OIL: Oil Summary At European Close: Crude Rises

Senate Majority Leader John Thune (R-SD) has downplayed the broader implications of President Donald Trump's USD$9.4 billion rescissions package ahead of the first Senate votes on a request that has threatened to derail government funding negotiations. The first procedural vote could take place as soon as this evening, if Thune can get a handful of wavering Republicans onside. 

• Thune said on the Senate floor that the House-passed recissions package has "a focus on woke and wasteful foreign aid dollars. We're going to consider that common-sense legislation this week." Thune added: "...incredibly, Democrats are melting down at the prospect of even the most minor cuts to federal spending. You'd think we are proposing to defund the entire government from the way they are talking."
• Senate Minority Leader Chuck Schumer (D-NY) said yesterday: "This rescissions package is certainly troubling, but the pattern behind it is even worse. It sets the stage for even more party-line devastating cuts for the future, to healthcare, education, anything Republicans decide they don’t like. All on a party line vote. All because of obeisance and fear of Donald Trump."
• Schumer last week explicitly tied the package to FY26 government funding, and with the appropriations process stalled, Thune will almost certainly require Democrat votes to pass a short-term measure to offset a government shutdown in October.
• Polymarket currently shows a conservative 40% chance of a government shutdown in 2025, reflecting conventional wisdom that Democrats will not allow a shutdown despite having few other options for leverage.

• total 22,500 USU5 108 puts, 28-29 vs. 112-09/0.16% at 1031:00ET

As reported beforehand: "FRENCH PM: TWO DAYS OF PUBLIC HOLIDAYS WILL BE SCRAPPED AS PART OF 2026 BUDGET SAVINGS DRIVE" Reuters

Additional headlines of note:

• "FRENCH PM: WE WILL CALL ON TAXPAYERS WHO CAN MAKE A BIGGER EFFORT TO DO SO BY LIMITING CERTAIN TAX BREAKS" Reuters

10-year OAT/Bund spread remains steady at 69.5bps.