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Oil gains in shutdown-addled market; US crude ends higher

Reuters with CNBC.com
Tuesday, 8 Oct 2013 | 2:38 PM ET
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Crude prices on both sides of the Atlantic rose on Tuesday, with U.S. oil settling higher as the dollar remained weak and geopolitical risk crept back into the markets.

Political clashes in Egypt and the capture by U.S. forces of a senior al Qaeda figure in Libya over the weekend raised the specter of supply disruptions in a region that pumps a third of the world's oil.

Upward pressure on Brent was expected to ease as the supply of North Sea crude that underpins the benchmark is set to reach a 2013 high in November, according to loading programs.

Markets were concerned that the U.S. government shutdown would cut demand and hurt consumer confidence. JPMorgan economists estimate every week of shutdown translates to a 0.12 percent reduction in the U.S. quarterly annualized GDP growth rate.

Brent was 60 cents higher above $110 per barrel. U.S. oil settled up 46 cents at $103.49 per barrel.

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