Commodities

Oil prices down in Asia on US debt woes

PTI Singapore | Updated on March 12, 2018 Published on July 29, 2011

The US debt stalemate continued to roil crude markets in the Asian trade today as a vote in the House of Representatives on a Republican debt plan was postponed.

New York’s main contract, light sweet crude for delivery in September, fell 22 cents to $97.22 per barrel. Brent North Sea crude for September delivery shed four cents to $117.32.

“Investors continued to worry about the stalled US debt talks,” Phillip Futures said in a report.

US politicians were still wrangling over a compromise deal to stave off a debt default on August 2, with Republican lawmakers challenging their Democratic counterparts to vote for their debt plan yesterday.

However, in a sign that the plan could not garner enough support even within their own party, the vote originally scheduled for the House of Representatives yesterday was postponed.

The House was forced to recess while the House Speaker, Mr John Boehner, met one by one with Republican lawmakers to shore up support for his two-step plan to raise the $14.3-trillion debt ceiling enough to avert default for at least six months.

With five days to go until the default deadline when the Treasury says it will run out of funds, the IMF chief, Ms Christine Lagarde, also piled on the pressure for a deal saying the dollar’s status could be in doubt if the impasse continues.

Published on July 29, 2011
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