Benchmark oil prices are likely to flat-line this week until investors get more details and certainty on a deal to raise the U.S. debt ceiling before an October 17 deadline, according to CNBC's latest market survey of traders, analysts and strategists.
Nearly 38 percent of the respondents in CNBC's latest poll of oil market sentiment (9 out of 24) believe prices will be little changed this week, a third (8 out 24) expect prices to fall while around 29 percent (7 out of 24) say prices may gain.
"Investors should wait for clarity or a sell-off in commodities before taking on long positions," said UBS commodity strategists Dominic Schnider and Giovanni Staunovo. "The risk reward is simply not attractive at present, especially with most commodity markets being well-supplied."
The government has been partially shuttered since October 1. The shutdown has lasted longer than many expected, and while proposals from both President Barack Obama and congressional Republicans have been viewed as signs of progress, a final agreement remains elusive, Reuters reported. If the $16.7 billion federal borrowing limit is not increased by October 17, it could lead to a U.S. debt default.