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Crude dips on debt ceiling fears, soft New York output data

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Investing.com - Crude oil futures slid in mid-session U.S. trading on Tuesday after New York state manufacturing data disappointed.

Fears political bickering and impasses will mark upcoming debt ceiling talks in the U.S. pushed crude oil prices down as well.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in March traded at USD94.31 a barrel on Tuesday, down 0.30%, off from a session high of USD94.88 and up from an earlier session low of USD94.06.

In the U.S., the Empire State manufacturing index declined to -7.8 in January from a reading of -7.3 in December, according to the Federal Reserve Bank of New York.

Analysts had expected the index to improve to 2.0 this month.

The news sent oil prices dipping as did fears brinkmanship will mark the upcoming debt ceiling talks.

Fears markets may roil as the U.S. government approaches its USD16.4 trillion debt ceiling, likely sometime by late February have been growing lately, especially after President Barack Obama on Monday urged Republicans to agree to lift the borrowing limit but stopped short of offering concrete concessions in return.

In 2011, when the country last approached its government borrowing limit, lawmakers waited until the very end to move, nearly throwing the country into default and prompting the Standard & Poor's credit ratings agency to strip the country of its triple-A rating.

Meanwhile in Europe, preliminary data revealed that Germany's economy, the eurozone's largest, contracted by 0.5% in the fourth quarter, bringing the annual rate of growth to 0.7%, much slower than the 3% growth rate posted in 2011.

Another separate report showed that the eurozone trade surplus widened to EUR11 billion in November from EUR7.4 billion in October, as exports rose 5%.

Elsewhere on the ICE Futures Exchange, Brent oil futures for March delivery were down 0.32% at USD110.60 a barrel, up USD16.29 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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