Brent steadies above $111 as US debt weighs on prices

Pressure: the US debt ceiling and a forecast rise in the country's oil stocks weighs on prices

AP/Scanpix

Danica Newnham

 15 January 2013 05:59 GMT

Brent crude held steady above $111 per barrel on Tuesday after ending the previous session more than $1 higher, with the lack of an agreement over the US debt ceiling and a forecast increase in the country's oil inventory weighing on prices.

Federal Reserve Chairman Ben Bernanke on Monday warned the economy was still at risk from political gridlock over the deficit and urged lawmakers to lift the country's borrowing limit to avoid a potentially disastrous default.

Reuters said investors were keeping a cautious watch on US fiscal woes and awaited more data from top economies to assess the global growth outlook.

Brent crude slipped 25 cents to $111.63 per barrel by early Tuesday morning. The February contract, which expires on Wednesday, settled $1.24 higher, while the one for March delivery ended $1.11 up. US…

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