DTN Oil Update
Oil Prices Edge Up on Hopes of US Government Reopening
VIENNA (DTN) -- Oil prices edged higher Monday, Nov. 10, morning, supported by a broader upswing in equities and most commodities, on signs that the longest U.S. federal government shutdown in history could soon come to an end.
The NYMEX WTI contract for December delivery rose $0.30 to $60.05 bbl, while ICE Brent for January delivery advanced $0.31 to $63.94 bbl.
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December RBOB gasoline futures rose $0.0109 to $1.9512 gallon. Front-month ULSD futures, however, bucked the uptrend by sliding $0.0102 to $2.4719 gallon.
The U.S. Dollar Index was little changed, down by 0.071 points to 99.400 against a basket of foreign currencies.
On Sunday, the U.S. Senate passed a measure to advance to a vote on a proposed funding bill that would end the ongoing government shutdown, currently in its 40th day. The vote on the bill itself has yet to be scheduled, and the bill will need majority approval in the U.S. House of Representatives after passing the Senate.
The record-long shutdown has weighed on broader market sentiment. The University of Michigan last week reported the Index of Consumer Sentiment had fallen to a three-year low 50.3 points in November.
Further weighing on the oil complex, the prospect of widespread flight cancellations mounted as air traffic controllers have been retiring at record rates over the past forty days, raising concerns about jet fuel demand ahead of one of the busiest travel seasons of the year. Close to 5,400 flights have been canceled in the last three days, and delays amounted to around 23,900 since Friday.
Amid the air traffic controller shortage, the Federal Aviation Administration mandated a 6% reduction in flights by Tuesday and 10% by Friday.
Despite the risk-on sentiment, oil prices remain under pressure amid signs of a growing global glut.
Monthly oil market reports by the International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries are scheduled for release this week, and will be closely parsed for signs of oversupply and revisions to inventory forecasts.