Newscast Media WASHINGTON—After a 16-day shutdown, a measure that was signed
by Barack Obama to end the impasse between the House the Senate, will avert a
default by the US on its debt obligations, and also allow the government to reopen
President Barack Obama signed a bill that restores government funding through
January 15 and extends its borrowing authority through February 7, though the
Treasury Department which will be able to avert a default by the United States.
“Employees should expect to return to work in the morning,” Sylvia Mathews Burwell,
the White House budget director, said in a statement.
“With the shutdown behind us and budget committees forming, we now have an
opportunity to focus on a sensible budget that is responsible, that is fair, and that
helps hardworking people all across this country,” Obama said at the White House.
“Because we’ve all got a lot of work to do on behalf of the American people – and
that includes the hard work of regaining their trust. Our system of self-government
doesn’t function without it. And now that the government is reopened, and this
threat to our economy is removed, all of us need to stop focusing on the lobbyists,
and the bloggers, and the talking heads on radio, and the professional activists who
profit from conflict, and focus on what the majority of Americans sent us here to do –
and that’s grow this economy, create good jobs, strengthen the middle class, lay the
foundation for broad-based prosperity, and get our fiscal house in order for the long
haul,” Obama added.
Newscast Media CHICAGO—Global oil prices fell on Monday as top crude consumer the United States faces the prospect of a potentially devastating sovereign debt default. New York’s main contract, West Texas Intermediate (WTI) for delivery in November dropped 16 cents to $101.86 per barrel.
Brent North Sea crude for November slid 91 cents to stand at $110.37 a barrel in London late afternoon trade.
“Crude oil prices retreated as the US budget issues in Washington weighed on market sentiment and raised persistent concerns about a slowdown in the US oil demand,” said Sucden brokers analyst Myrto Sokou.
Investors are keeping a close eye on Washington as Democrats and Republicans try to work out a deal to reopen the federal government and raise the country’s borrowing limit before a October 17 deadline.
“The main focus remains on the US debt ceiling and government shutdown as the markets are hoping for a resolution to the issue before Thursday’s deadline,” added Sokou.
With the US expected to run out of cash to pay its bills on Thursday, President Barack Obama has urged Republicans to agree to a debt ceiling hike. Failure to raise the spending limit would mean a default that could ravage demand in the world’s top oil consuming nation—and tip the global economy back into recession, analysts said.
Japan and the world’s top energy user China—which between them hold more than $2.4 trillion of US debt, have urged the US to get its house in order and avert a default.
“With only three days to go before the US tips over the soft deadline of its debt ceiling, progress on Capitol Hill seemed to come to a standstill,” Desmond Chua, market analyst at CMC Markets in Singapore, said in a note.
“The ball is now thrown back into the Senate’s court, with market watchers hoping that less conservative Republicans in the Senate will support a longer debt limit extension with no conditions attached.”
Crude futures had retreated on Friday after an International Energy Agency report highlighted the surge in production from North America and some other countries. Analysts pointed to a report by the IEA, which represents energy-consuming countries, that said third-quarter growth in output from nations outside the
Organization of the Petroleum Exporting Countries (OPEC) rose by 1.7 million barrels a day compared with last year.
This was “the steepest annual growth for any quarter in over 10-years,” the IEA said. Besides the United States and Canada, the additional supply comes from Kazakhstan and South Sudan. The IEA warned that the rise in non-OPEC oil would not necessarily mean lower prices because of instability in some leading OPEC countries, including Iraq and Libya.
Source: Al Manar TV News