WTI Crude Drops as U.S. Government Shutdown Begins
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West Texas Intermediate declined amid lower-than-average trading volumes as part of the U.S. government closed over a budget stalemate that threatens to slow the economy and reduce oil demand.
Futures dropped as much as 0.7 percent after a 4.9 percent loss last month. A midnight deadline in Washington passed after lawmakers failed to approve a funding bill. No further negotiations were immediately planned and both sides still disagree over raising the nation’s debt ceiling to avoid a first-ever default after Oct. 17. A U.S. Energy Information Administration report tomorrow may show crude stockpiles rose for a second week in the world’s largest oil consuming nation, according to a Bloomberg survey.