Oil slipped on Tuesday as bearish demand prospects prompted by a slowdown in global manufacturing activity overshadowed the approval of a debt deal by the House of Representatives to avert a default by top crude consumer the United States, according to a Reuters report.
Brent crude shed 30 cents to $116.51 a barrel by 0405 GMT. US WTI crude dipped 9 cents to $94.80 after trading as low as $93.42 on Monday, its lowest since late June, on news that the world’s manufacturing expanded at its weakest pace in two years last month.
The USÂ Senate votes later today on whether to approve a $2.1 trillion deficit-cutting plan extracted by Republicans as the price of raising the debt ceiling.
“The market is going to be thinking about the fundamental side of the economy, as well as what is going on in Washington, so it should be volatile,” in coming days, Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong told Reuters.
