Oil above $103 on hopes US will avoid debt default
NEW YORK (AP) - Oil prices jumped above US$103 a barrel on Thursday on hopes that US political leaders are near a deal to raise the debt ceiling.
By midday, US benchmark oil for November delivery was up US$1.52, or 1.5 per cent, to US$103.13 a barrel on the New York Mercantile Exchange, reversing most of Wednesday's decline of US$1.88 a barrel.
House Republicans said they would advance legislation to temporarily extend the government's borrowing authority so it can continue to pay its bills on time.
Though the Republicans' proposal could avert an unprecedented federal default that the Obama administration has warned could occur as early as October 17, it would not necessarily bring a quick end to the 10-day partial federal shutdown. Obama has insisted that Congress reopen the government and extend the debt limit without condition.