Crude gains as US lawmakers seek path to raise debt ceiling
West Texas Intermediate crude advanced as US lawmakers began taking the first tentative steps toward a path to raising the government’s debt limit.
By Bloomberg |
NEW YORK: West Texas Intermediate (WTI) crude advanced as US lawmakers began taking the first tentative steps toward a path to raising the government’s debt limit.
Prices increased as much as 0.9%. Senate Democrats are planning a test vote before the end of this week on a measure that would grant President Obama authority to raise the $16.7 trillion debt ceiling, probably for a year, unless two-thirds of both chambers of Congress disapprove.
US crude inventories may have risen a third week, according to a Bloomberg News survey before a government report on Wednesday. “There is a sense that they are going to get some type of a deal done to avoid going over the budget ceiling and that’s giving the market a little support,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago.
“But we are not out of the woods yet, and a possible default is still a big concern,” Flynn added. WTI for November delivery rose 74 cents, or 0.7%, to $103.77 a barrel at 9:06 am on the New York Mercantile Exchange.
The volume of all futures traded was about 25% below the 100-day average. Brent for November settlement advanced 64 cents, or 0.6%, to $110.32 a barrel on the London-based ICE Futures Europe exchange. Volume was 11% below the 100-day average. The European benchmark was at a premium of $6.55 to WTI, compared with $6.65 on Monday.
Senate plan
The Senate plan emerged as Gene Sperling, the director of Obama’s National Economic Council, opened another route toward at least a temporary resolution. He declined to rule out a short debt-limit extension while reiterating the administration’s preference for a longer-term resolution.
If all Senate Democrats along with six Republicans vote for giving Obama authority, they could send a debt-limit increase without policy conditions to the Republican-controlled House with only a few days to spare before US borrowing authority lapses on October 17.
Prices increased as much as 0.9%. Senate Democrats are planning a test vote before the end of this week on a measure that would grant President Obama authority to raise the $16.7 trillion debt ceiling, probably for a year, unless two-thirds of both chambers of Congress disapprove.
US crude inventories may have risen a third week, according to a Bloomberg News survey before a government report on Wednesday. “There is a sense that they are going to get some type of a deal done to avoid going over the budget ceiling and that’s giving the market a little support,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago.
“But we are not out of the woods yet, and a possible default is still a big concern,” Flynn added. WTI for November delivery rose 74 cents, or 0.7%, to $103.77 a barrel at 9:06 am on the New York Mercantile Exchange.
The volume of all futures traded was about 25% below the 100-day average. Brent for November settlement advanced 64 cents, or 0.6%, to $110.32 a barrel on the London-based ICE Futures Europe exchange. Volume was 11% below the 100-day average. The European benchmark was at a premium of $6.55 to WTI, compared with $6.65 on Monday.
Senate plan
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The Senate plan emerged as Gene Sperling, the director of Obama’s National Economic Council, opened another route toward at least a temporary resolution. He declined to rule out a short debt-limit extension while reiterating the administration’s preference for a longer-term resolution.
If all Senate Democrats along with six Republicans vote for giving Obama authority, they could send a debt-limit increase without policy conditions to the Republican-controlled House with only a few days to spare before US borrowing authority lapses on October 17.
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