WTI at $60 on Hopes of U.S. Government Reopening


   
Barani Krishnan
DTN Analyst

   SECAUCUS, NJ (DTN) - Crude futures settled up Monday (11/10) after two 
straight weeks of losses, finding support from Senate efforts to end the 
longest federal government shutdown in U.S. history.

   Following a preliminary agreement Sunday (11/9) night, the Senate reconvened 
to proceed with a debate and vote on a full funding package to reopen the 
government after 40 days of closure. The House of Representatives needs to 
approve the process before President Donald Trump signs off on it.

   The NYMEX WTI contract for December delivery settled up $0.38 at $60.13 bbl, 
while ICE Brent for January delivery advanced $0.41 to $64.04 bbl.  Both WTI 
and Brent had lost about 3% each over the prior two weeks.

   December RBOB gasoline futures rose $0.0272 to $1.9672 gallon. Front-month 
ULSD futures, however, bucked the uptrend by sliding $0.0152 to $2.4973 gallon.

   The U.S. Dollar Index was little changed, down by 0.071 points to 99.400 
against a basket of foreign currencies.

   Market participants will be closely scrutinizing forthcoming monthly oil 
market reports from the International Energy Agency (IEA), the US Energy 
Information Administration (EIA), and the Organization of Petroleum Exporting 
Countries (OPEC) this week for updated assessments of inventory forecasts and 
signs of persistent surplus.

   The record duration of the government shutdown dampened the risk-on appetite 
across markets, evident from the University of Michigan's consumer sentiment 
reading, which dropped to a three-year low.

   Mounting challenges to air travel also pressured the oil complex. A fog 
descended over jet fuel demand prospects after the cancellation of 5,400 
flights over the past three days, with the Federal Aviation Administration 
mandating a further 6% reduction in flights by Tuesday and 10% by Friday.




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