NEW YORK (AP) - The price of oil rose more than 1 percent Wednesday as the U.S. Senate announced a deal that would avoid a potentially catastrophic default on its debt and reopen the government.
Around midday, benchmark crude for November delivery was up $1.18, or 1.2 percent, to $102.39 a barrel on the New York Mercantile Exchange.
Democratic leader Harry Reid said Senate leaders reached a bipartisan deal to avoid default and end the government shutdown, now in its 16th day. The deal would reopen the government through Jan. 15 and increase the nation's borrowing authority through Feb. 7.
Republican Sen. Ted Cruz, who forced the government shutdown, said he won't delay a vote on the budget deal. That was a key concession that signaled a strong possibility that both houses could act by day's end.
The price of oil has swung back and forth for two weeks as lawmakers attempted to resolve an impasse that has left the government partially closed and the markets worried about the U.S. defaulting on its debt for the first time.
Government agencies including the Energy Information Administration, which keeps track of U.S. crude and fuel supplies, have stopped many services. The agency didn't issue its weekly report on supplies Wednesday. The report gives an indication about the strength of demand and often pushes the oil price up or down.
Brent crude's December contract, the benchmark used to set prices for international crudes used by many U.S. refineries gained 97 cents at $110.93 on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
- Wholesale gasoline rose 5 cent to $2.71 a gallon.
- Natural gas added 4 cents to $3.83 per 1,000 cubic feet.
- Heating oil gained 3 cents to $3.04 a gallon.
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Pablo Gorondi in Budapest contributed to this report.