NEW YORK, Oct. 8 (Xinhua) -- Oil prices rose on Tuesday, as the U.S. dollar remained weak amid a partial U.S. government shutdown and political standoff over the debt ceiling.
The dollar remained near eight-month low against a basket of major currencies, as the market is nervous about the potential consequences of a U.S. default on its debt.
The weaker dollar makes crude oil prices more attractive for buyers holding other currencies, boosting demand.
Republicans of the U.S. House of Representatives continued to call for budget discussions with Democrats on the federal funding bill and debt ceiling. "There's nothing on the table, and there's nothing off the table," House Speaker John Boehner said Tuesday.
President Barack Obama warned Tuesday that Congress would drop the equivalent of an economic "nuclear bomb" should it fail to raise the debt ceiling.
Investors are growing more concerned over the fiscal gridlock, as the debt ceiling deadline is looming. The U.S. federal government has to raise its borrowing limit before Oct. 17 so as to avoid a default on its debt.
A default could have catastrophic consequences, the Treasury Department said in a report. The United States is the biggest oil- consuming country of the world, accounting for a fifth of global demand last year.
Light, sweet crude for November delivery increased 0.46 dollars to 103.49 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 0.48 dollars to close at 110.16 dollars a barrel.