Oil prices rise on optimism over potential end to U.S. shutdown
Oil prices edged higher Monday on rising hopes that an end to the long-running U.S. government shutdown will help boost demand in the world’s biggest fuel consumer.
At 08:40 ET (13:40 GMT), Brent oil futures for January rose 0.4% to $63.91 a barrel, while West Texas Intermediate crude futures rose 0.4% to $60.01 a barrel.
End to U.S. government shutdown?
The U.S. Senate on Sunday moved forward on a measure aimed at reopening the federal government, after a group of Democrats reached a deal to back a Republican spending bill to fund the government until January 30, 2026.
This deal has still to be approved by both houses and be signed off by President Donald Trump, but has the potential to end the now 41-day shutdown that has sidelined federal workers, delayed food aid and snarled air travel.
Airlines canceled more than 2,800 U.S. flights and delayed more than 10,200 on Sunday in the worst day for disruptions since the start of the shutdown.
An end to the shutdown could set the stage for strong air travel during the winter holidays, which is usually positive for oil.
OPEC+, IEA monthly reports due
Both contracts fell about 2% last week, notching their second weekly decline, on fears of a supply glut next year and weakening global demand, amid sluggish growth.
The Organization of the Petroleum Exporting Countries and its allies, or OPEC+, agreed to increase output slightly in December, but it also paused further hikes in the first quarter.
The producer group has hiked output by nearly 3 million barrels per day so far in 2025.
OPEC and the International Energy Administration are both set to release their monthly reports later this week, on Wednesday and Thursday, respectively.
The two groups have widely differing outlooks on oil demand and supply in the coming months.
Source : Investing.com
