Oil prices advanced on Monday, supported by growing optimism that the U.S. government shutdown may soon come to an end, potentially boosting demand in the world’s largest oil-consuming nation. The positive sentiment helped offset ongoing worries about rising global supply levels.
By 07:51 GMT, Brent crude futures climbed 39 cents, or 0.61%, to $64.02 per barrel, while U.S. West Texas Intermediate (WTI) crude gained 43 cents, or 0.72%, to $60.18 per barrel.
The shutdown, which has stretched into its 40th day, appears to be nearing resolution after the Senate moved toward a vote on Sunday to reopen the federal government — a development that lifted global market sentiment.
“The imminent reopening is a welcome boost, restoring pay to 800,000 federal workers and restarting vital programs that will lift consumer confidence, activity and spending,” said Tony Sycamore, market analyst at IG.
“This should also help improve risk sentiment across markets and cause a rebound in WTI prices toward $62 a barrel,” he added.
While the political progress has brightened the outlook for energy demand, analysts remain cautious about potential fallout from flight cancellations, which could temporarily weigh on U.S. jet fuel consumption. Airlines canceled more than 2,800 flights and delayed over 10,200 on Sunday — the worst day of travel disruptions since the start of the shutdown.
Both Brent and WTI posted losses of about 2% last week, marking their second straight weekly decline, as traders fretted over a possible supply glut. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) recently agreed to a modest output increase in December, while pausing further hikes during the first quarter to prevent an oversupply situation.
In the U.S., crude stockpiles have continued to rise, and the volume of oil stored on ships in Asian waters has nearly doubled in recent weeks. The buildup follows tighter Western sanctions, which have restricted oil imports to China and India, while limited import quotas have curbed demand among independent Chinese refiners.
Meanwhile, Indian refiners are increasingly sourcing crude from the Middle East and the Americas to offset the loss of Russian barrels under sanctions.
Russian producer Lukoil is also facing heightened disruption as the U.S. deadline for companies to end business ties with the firm approaches on November 21, after a planned sale to Swiss trader Gunvor fell through.
Adding to oversupply concerns, U.S. President Donald Trump’s decision to grant Hungary a one-year exemption from sanctions on Russian oil imports could bring more barrels into the global market, according to Sycamore.
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