Despite partial US government shutdown, oil prices recovered Friday as tropical Storm Karen is approaching the coast of Gulf of Mexico. Tropical Storm Karen is moving through the Gulf of Mexico to the US coast, threatening crude production in the region. The Gulf Coast is home to 23 percent of US oil production, and more than 45 percent of petroleum refining capacity, according to the Energy Department. Several oil companies operating in the Gulf of Mexico were taking precautionary measures. Traders were also keeping a close watch on the development in Washington DC as the partial federal government shutdown dragged into a fourth day. Obama has canceled his trip to Asia next week due to the government shutdown, while House Speaker John Boehner reiterated Friday that he won\'t allow the country to default on its debt. One Congressman also said Thursday the two fiscal disputes between Republicans and Democrats on funding the government and raising the debt ceiling might merge into one negotiation. The closely-watched non-farm payrolls report for September, originally scheduled for Friday morning by the Labor Department, was canceled due to the government shutdown. Light, sweet crude for November delivery increased 0.53 dollars to settle at 103.84 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery gained 0.46 dollars to close at 109.46 dollars a barrel.