Oil prices edged lower this evening in choppy trading as the inability of the US Congress to reach agreement on raising the government debt limit kept investors wary of risky assets and concerned about the global economy.
Low trading volumes boosted volatility and brokers and analysts expected some market participants to stay on the sidelines awaiting the outcome of US efforts to avoid default.
Brent crude fell 76 cents to $117.91 a barrel, while US crude dropped 60 cents to $99.27 a barrel. Trading levels of both contracts were reported to be more than 60% below recent averages.
Oil prices bounced off earlier lows, still in sight of last week's highs, and some analysts maintained that worries about a US default remained remote and were unlikely to translate into a real economic crisis.
