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Oil prices rise as talks to end US lockdown progress
Oil prices rose on Monday, November 10, as investors assessed steps to end the U.S. government shutdown, while concerns persisted about a supply glut in the crude oil market.
Brent crude futures rose 43 cents, or about 0.7%, to $64.06 a barrel by 2:09 p.m. GMT.
U.S. West Texas Intermediate crude futures also rose about 43 cents, or 0.7%, to $60.18 a barrel.
An end to the historic government shutdown, now in its 40th day, seemed imminent after the Senate moved on Sunday to vote on reopening the federal government.
"The impending reopening is a welcome boost," Tony Sycamore, a market analyst at the International Crisis Group, told Reuters. "It will restore pay to 800,000 federal employees and restart vital programs that will help boost consumer confidence, activity, and spending."
Sycamore added that this "should also help improve risk sentiment in the markets and could push West Texas Intermediate crude prices toward $62 a barrel."
Oil Prices Decline
Brent crude and West Texas Intermediate fell by about 2% last week, marking their second consecutive weekly decline, amid concerns about a supply glut.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) reached an agreement on a slight increase in production during December, with any further increases suspended in the first quarter of this year.
In the United States, the volume of crude oil stored on ships in Asian waters has more than doubled in recent weeks, after tightened Western sanctions curtailed imports by China and India. Shortfalls in import quotas have also reduced demand from independent Chinese refiners, amid concerns about oversupply.
