Investing.com – Crude oil futures extended gains on Monday, jumping to a three-day high after U.S. Congressional leaders reached an agreement to raise the U.S. debt ceiling, while mounting concerns over a disruption to supplies in the Gulf of Mexico also lent support.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD97.94 a barrel during U.S. morning trade, surging 2.05%.
It earlier rose as much as 2.5% to trade at USD98.42 a barrel, the highest price since July 27.
Late on Sunday, President Barack Obama announced a deal between Republicans and Democrats to cut spending and raise the USD14.3 trillion debt ceiling, easing worries about a possible sovereign debt default.
Under the framework deal, which was to be voted on in Congress later in the day, the debt ceiling will be raised by at least USD2.1 trillion, sufficient to serve the government’s needs into 2013.
Crude prices found further support after the U.S. National Weather Service said earlier that a low pressure storm system moving west toward the islands of the eastern Caribbean has a 90% chance of developing into a tropical cyclone during the next 48 hours.
The storm advisory comes a day after the U.S. National Hurricane Center said that Tropical Storm Eugene could strengthen to become a hurricane within the next 48 hours, as it headed west-northwest over open water in the Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 29% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rallied 2% to trade at USD119.14 a barrel, up USD21.20 on its U.S. counterpart.
Earlier in the day, Italian lender Unicredit raised its Brent oil average price forecast for the rest of the year by nearly 16% to USD120 a barrel, citing a disruption to supplies in the North Sea.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in September traded at USD97.94 a barrel during U.S. morning trade, surging 2.05%.
It earlier rose as much as 2.5% to trade at USD98.42 a barrel, the highest price since July 27.
Late on Sunday, President Barack Obama announced a deal between Republicans and Democrats to cut spending and raise the USD14.3 trillion debt ceiling, easing worries about a possible sovereign debt default.
Under the framework deal, which was to be voted on in Congress later in the day, the debt ceiling will be raised by at least USD2.1 trillion, sufficient to serve the government’s needs into 2013.
Crude prices found further support after the U.S. National Weather Service said earlier that a low pressure storm system moving west toward the islands of the eastern Caribbean has a 90% chance of developing into a tropical cyclone during the next 48 hours.
The storm advisory comes a day after the U.S. National Hurricane Center said that Tropical Storm Eugene could strengthen to become a hurricane within the next 48 hours, as it headed west-northwest over open water in the Gulf of Mexico.
Energy traders track tropical storm activity in the event it disrupts production in the Gulf of Mexico, which is home to 29% of U.S. oil production.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for September delivery rallied 2% to trade at USD119.14 a barrel, up USD21.20 on its U.S. counterpart.
Earlier in the day, Italian lender Unicredit raised its Brent oil average price forecast for the rest of the year by nearly 16% to USD120 a barrel, citing a disruption to supplies in the North Sea.