Oil prices rose on Monday, November 10, on optimism that the US government may soon resume its work and this will increase demand in the world's largest oil consumer, offsetting concerns about growing supplies around the world.
This is reported by Economic Pravda with reference to Reuters.
The report says that Brent oil futures rose by 45 cents, or 0.71%, to USD 64.08 per barrel.
WTI oil futures in the US rose by 48 cents, or 0.80%, to USD 60.23 per barrel.
Thus, it is noted that the end of the historic US government shutdown, which has been going on for 40 days, became possible because the Senate on Sunday moved to vote on the resumption of the federal government.
"The imminent reopening of the government will be a major factor in restoring pay for 800,000 federal workers and restarting vital programs that will boost consumer confidence, activity and spending," said IG Market analyst Tony Sycamore.
"This should also improve sentiment in the markets and help WTI prices recover to USD 62 a barrel," he added.
Brent and WTI fell about 2% last week, posting their second weekly declines on concerns about oversupply.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to increase production in December but also suspended further increases for the first quarter, fearing oversupply.
The US is also seeing rising oil inventories, with the amount of oil stored on ships in Asian waters doubling in recent weeks after Western sanctions curbed imports to China and India, and as a shortage of import quotas has cut demand from independent Chinese refiners.
Indian refiners have turned to the Middle East and America to replace sanctioned russian supplies.
Russian oil producer LUKOIL is facing increasing difficulties as a deadline looms for companies to stop doing business with the russian oil giant by November 21 and a deal to sell its operations to Swiss trader Gunvor collapses.
US President Trump's decision to grant Hungary a one-year reprieve from US sanctions on russian oil imports has added to concerns about a global supply glut, Sycamore said.
As Ukrainian News Agency earlier reported, oil prices rose on Monday, November 3, after OPEC+ decided to refrain from increasing production in the first quarter of next year, which eased growing concerns about a surplus.
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