Oil gains on US government shutdown optimism

By Enes Tunagur

LONDON (Reuters) -Oil prices roseate connected Monday connected optimism that the U.S. authorities shutdown could extremity soon and assistance request successful ​the world's apical lipid consumer, offsetting concerns astir rising supplies globally.

Brent crude futures ‌rose 50 cents, oregon 0.79%, to $64.13 a tube by 0916 GMT. U.S. West ‌Texas Intermediate crude was astatine $60.28 a barrel, up 53 cents, oregon 0.89%.

The U.S. Senate connected Sunday moved guardant connected a measurement aimed astatine reopening the national authorities and ending a present 40-day shutdown that has sidelined national workers, delayed nutrient assistance and snarled aerial ⁠travel.

U.S. lawmakers' archetypal ‌step successful ending the shutdown helped the instrumentality of hazard appetite to markets, PVM expert Tamas Varga said.

Analysts were acrophobic astir immoderate interaction from formation cancellations ‍on U.S. pitchy substance demand. Airlines canceled much than 2,800 U.S. flights and delayed much than 10,200 connected Sunday successful the worst time for disruptions since the commencement of a U.S.​ authorities shutdown.

Brent and WTI fell astir 2% past week and notched their 2nd play ‌decline, connected fears of a proviso glut. The Organization of the Petroleum Exporting Countries and its allies, oregon OPEC+, agreed to summation output somewhat successful December, but it besides paused further hikes successful the archetypal quarter.

Crude inventories are besides connected the emergence successful the United States portion the measurement of lipid stored connected committee ships successful Asian waters has doubled successful caller weeks aft tightening ⁠Western sanctions curtailed imports to China and India and ​as a shortage of import quotas curbed request from autarkic Chinese ​refiners.

There's a decoupling betwixt the rising measurement of crude lipid stored astatine oversea and the progressively constricted availability of Russian products, PVM's Varga said.

Russia's ‍Tuapse lipid refinery successful the ⁠Black Sea suspended substance exports aft drone attacks earlier this month, according to 2 manufacture sources and LSEG vessel tracking data.

Russian lipid shaper Lukoil is facing mounting disruptions arsenic a ⁠U.S. deadline for companies to chopped disconnected concern with the Russian institution looms connected November 21 and aft a ‌hoped-for merchantability of the operations to Swiss trader Gunvor collapsed.

(Reporting by Florence ‌Tan; Editing by Christian Schmollinger and Joe Bavier)