Bloomberg (17/10) -- West Texas Intermediate crude rose after Senate
leaders reached a deal to increase the U.S. debt ceiling and end the
government shutdown.Futures gained 1.1 percent on the agreement
between Senate Majority Leader Harry Reid and Minority Leader Mitch
McConnell that will extend U.S. borrowing authority, which would
otherwise lapse tomorrow. House Speaker John Boehner, a Republican, said
in a statement that his party won’t block the Senate compromise. Both
houses plan to vote on the deal later today. The biggest remaining
question is how quickly the deal could become law.“The Senate
agreement and signals that it will be allowed on the House floor are
sending prices higher,” said Gene McGillian, an analyst and broker at
Tradition Energy in Stamford, Connecticut. “We should continue moving
higher unless there’s a headline pointing to the House Republicans not
allowing a vote.”WTI crude for November delivery climbed $1.08
to settle at $102.29 a barrel on the New York Mercantile Exchange. The
contract declined 1.2 percent to $101.21 yesterday, the lowest
settlement since July 2. The volume of all futures traded was 25 percent
above the 100-day average at 4:37 p.m.Price gains eased after
the American Petroleum Institute reported inventories rose 5.94 million
barrels last week. The November contract advanced 99 cents, or 1
percent, to $102.20 a barrel in electronic trading at 4:39 p.m. It was
at $102.24 before the report was released at 4:30 p.m.
