Oil prices slip on fears of US shutdown

SINGAPORE: Oil prices slipped in Asian trade Thursday as investors fretted about the impact on oil demand as lawmakers in Washington look unlikely to reach an early agreement to end the US government shutdown.

New York's main contract, West Texas Intermediate (WTI) for delivery in November, fell 39 cents to $101.71 in mid-morning trade, while Brent North Sea crude for November eased 27 cents to $108.92.

WTI jumped $2.06 in New York trade Wednesday on news about the near completion of a key US Gulf Coast pipeline, but the upbeat sentiment over increased supply was shortlived. Brent rose $1.25 in London trade.

"Markets are closely following developments in the US as the federal government shutdown enters its third day. A continuation of shutdown will dampen prices," said Sanjeev Gupta, the head of the Asia-Pacific Oil and Gas practice at consultancy firm EY.

Talks between an exasperated President Barack Obama and top Republicans on Wednesday failed break the impasse, with both sides accusing the other of refusing to negotiate.