DTN Oil Update

Barani Krishnan
DTN Refined Fuels Market Reporter

SECAUCUS, N.J. (DTN) -- Crude futures settled up Monday, Nov. 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, Nov. 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.