Oil prices rose on Monday amid optimism that the U.S. government shutdown could soon end, increasing demand in the world’s largest oil consumer and alleviating concerns over rising global supplies.
By 01:23 GMT, Brent crude futures had increased by 47 cents or 0.74% to $64.10 a barrel. West Texas Intermediate crude was priced at $60.25 a barrel, up 50 cents or 0.84%.
The historic U.S. government shutdown, now in its fortieth day, appears to be nearing an end, as the Senate moved toward a vote on reopening the federal government yesterday, Sunday.
According to market analysts, “the imminent reopening is a welcome boost, as it will restore pay to 800,000 federal workers and restart vital programs that will enhance consumer confidence, activity, and spending.”
They added that “this is also expected to improve risk sentiment in the markets,” leading to a recovery in West Texas Intermediate prices towards $62 a barrel.
Both Brent and West Texas Intermediate crude saw declines of about two percent last week, marking their second weekly drop, amid concerns over supply surplus. The Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to a slight production increase in December but also halted further increases in the first quarter of next year.
