• Caught in the debt trap?

    Help us help you by taking our second annual Debt survey and you could win R3 000.

  • Rich man, poor man

    Culture change from below is the only way to overcome poverty, says Leopold Scholtz.

  • Tech bubble talk

    After the tech euphoria of 2013, the fast-moving sector has hit a speed bump.

Data provided by McGregor BFA
All data is delayed
Loading...
See More

Oil down as fiscal cliff euphoria fades

Jan 03 2013 07:47 AFP

(Ed Andrieski, AP)

Related Articles

Oil nears $113 as US averts crisis

Oil down on US fiscal cliff deadlock

Oil up amid last-ditch fiscal cliff talks

Oil mixed on US fiscal cliff worries

Oil dips as fiscal cliff approaches

Oil markets enter 2013 on high note

 

Singapore -  Oil prices were down in Asian trade on Thursday as the initial euphoria over the fiscal cliff deal in the United States faded, analysts said.

Caution returned to markets, with traders realising tough battles still lie ahead even after the last-minute deal struck by feuding Republican and Democrat lawmakers in the US Congress.

New York's main contract, light sweet crude for delivery in February dropped 46 cents to $92.66 a barrel and Brent North Sea crude for February delivery shed 41 cents to $112.06.

"The market lost steam after the excessive buying of oil in reaction to the passing of the US fiscal cliff deal," said Victor Shum, managing director of IHS Purvin and Gertz in Singapore.

"Some caution has returned to the market. After all, there are going to be more negotiations in the fiscal deal in the next two months," he said.

Global financial markets soared Wednesday after the US Congress backed a stop-gap agreement that averted across-the-board tax hikes and automatic spending cuts which some had feared could tip the economy back into recession.

However, the US lawmakers only delayed the spending cuts for two months, meaning another debilitating stand-off is almost certain at the end of February.

Other feuds yet to be addressed include lifting the US debt ceiling and funding government operations.

"Between now and late February, the drama will shift towards two issues - the lifting of the federal debt ceiling and budget spending cuts," DBS Bank said in a market commentary.

"In exchange for their support for increasing taxes on the wealthy, the Republicans would now want the Democrats to agree to spending cuts before agreeing to lifting the debt ceiling. This sets the stage for another drama."


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

commodities  |  markets  |  oil  |  us fiscal cliff
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

The rich will pay - Mpofu

The EFF in Gauteng will focus all its energy on improving the lives of the poor, the party's premier candidate Dali Mpofu says.

 
 

Latest elections multimedia

Watch what happened when we blindfolded Helen Zille and asked her to eat random things
13 days to elections - news you need to know
11 Julius Malema quotes you'll never forget
DA won't get 30% - Zille

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...