DTN Oil Update
Oil Extends Rise After Senate Bill to End US Shutdown
VIENNA (DTN) -- Oil prices extended their advance Tuesday, Nov. 11, morning, buoyed by a broader upswing in financial markets after the U.S. Senate passed a bill that would end the longest U.S. federal government shutdown in history.
The NYMEX WTI contract for December delivery rose $0.71 to $60.84 bbl, and ICE Brent for January delivery advanced $0.70 to $64.76 bbl.
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December RBOB gasoline futures rose $0.0202 to $1.9913 gallon, and front-month ULSD futures advanced $0.0423 to $2.5527 gallon.
The U.S. Dollar Index softened by 0.247 points to 99.215 against a basket of foreign currencies.
Late Monday, Nov. 10, the U.S. Senate passed a bill to reopen the federal government after a record 41-day shutdown, paving the way for the House of Representatives to approve the measure and for President Donald Trump to sign it. The House is scheduled to reconvene Wednesday.
The record-long shutdown is expected to have led to a large backlog likely to cause delays once the federal government reopens, from the payout of benefits to the release of important macroeconomic indicators -- whose absence has complicated deliberations on monetary policy by the Federal Reserve.
It may also take days or weeks for flights to return to normal after air traffic controllers retiring at record rates led to shortages, forcing the Federal Aviation Administration to mandate reductions in flights. Thousands of flights have been cancelled since Friday, with the FAA mandating a 10% reduction in flights by Friday, Nov. 14.
Oil markets are also set for a data-heavy week. On Wednesday, the International Energy Agency is set to release its yearly World Energy Outlook, followed by its November Oil Market Report on Thursday.
The U.S. Energy Information administration's Short-Term Energy Outlook for November and the Organization of Petroleum Exporting Countries' monthly oil market report are both scheduled for release Wednesday.