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Crude left in the cold as US government shuts doors

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Brent oil fell to its lowest level in nearly two months on Tuesday, following sharp losses in other commodities, on worries that a shutdown of the U.S. government will crimp demand in the world's largest oil consumer.

The U.S. government began a partial shutdown on Tuesday for the first time in 17 years, potentially putting up to 1 million workers on unpaid leave, closing national parks and stalling medical research projects.

Analysts expect that a swift resolution will limit the downside in oil prices but prices fell swiftly during the day.

Brent crude for November fell by 60 cents to trade under $108. U.S. crude settled down 29 cents at $102.04, its lowest levels since August 8.

Oil has come under downward pressure in the past month as supply has improved, with Libya ramping up output while tensions over Syria and Iran have eased.

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