Crude oil futures slumped in the domestic market on Monday as investors and speculators exited positions in the energy commodity amid fears that a possible US government shutdown may harm growth in the world’s biggest economy, dimming the demand outlook for the fuel. The US government looked set for a shutdown for the first time in 17 years as a last-minute budget deal in the Congress seemed unlikely with the Republicans and Democrats locking horns over whether to tie the funding of President Obama’s health care reforms with a short-term extension of government funding.

Easing supply concerns also weighed on the fuel as the United Nations Security Council approved a proposal to eliminate Syria’s chemical weapons, dimming the chances of a US military action against the country, tempering fears over crude supply disruptions from the Middle East.

At the MCX, Crude Oil futures, for the October 2013 contract, closed at Rs 6,440 per barrel, down by 1.42 per cent, after opening at Rs 6,477, against a previous close of Rs 6,533. It touched an intra-day low of Rs 6,373.