Oil Prices Dip Slightly as Markets Eye U.S. Government Reopening

Oil prices slipped modestly in early Asian trading on Wednesday, as investors weighed optimism over the potential end of the record-long U.S. government shutdown against ongoing concerns about oversupply in global crude markets. A stronger U.S. dollar also added pressure, limiting any short-term rebound in prices.

By 20:21 ET (01:21 GMT), Brent crude futures for January delivery were down 0.2% at $65.04 per barrel, while West Texas Intermediate (WTI) crude slipped 0.2% to $60.85 per barrel.

U.S. Government Reopening Vote in Focus

The U.S. Senate passed a funding bill on Tuesday to reopen the government, and the Republican-led House of Representatives is expected to vote on the measure Wednesday. If passed and signed by President Donald Trump, the legislation would end a 42-day shutdown — the longest in U.S. history.

Expectations of a government reopening provided modest support to oil prices, as the prolonged shutdown had disrupted travel and reduced demand for fuel. Shortages of air traffic controllers and safety personnel led to widespread flight cancellations across major airports, compounding the drag on consumption.

Supply Glut Concerns and Sanctions Risks Persist

Crude prices gained some traction on Tuesday after reports that Russia’s Lukoil declared force majeure at one of its Iraqi oilfields, underscoring the reach of new U.S. sanctions imposed on Russia’s major energy companies last month. These measures are expected to tighten global supply in the near term, partially offsetting concerns of a growing surplus.

However, sentiment in the oil market remains cautious. Despite occasional rebounds, prices have trended lower throughout 2025 amid fears of a significant oversupply developing into 2026. Analysts point to the OPEC+ alliance’s steady production increases and sluggish demand from key importers — particularly China — as major factors behind the bearish outlook.

With global inventories continuing to rise and demand growth showing little momentum, traders remain skeptical that the recent geopolitical and policy developments will be enough to shift the market’s downward trajectory in the near term.