Oil prices edge lower as markets eye US government reopening
Oil prices softened on Wednesday but investor expectations that an end to the longest-ever U.S. government shutdown could boost demand in the world's biggest crude-consuming nation curbed losses.
Brent crude futures slipped 32 cents, or 0.5%, to $64.84 a barrel by 0843 GMT after gaining 1.7% on Tuesday. U.S. West Texas Intermediate crude was down 35 cents, or 0.6%, at $60.69 a barrel, after climbing 1.5% in the previous session.
The U.S. Republican-controlled House of Representatives is set to vote on Wednesday afternoon on a bill, already signed off by the Senate, that would restore funding to government agencies through January 30.
A government reopening would boost consumer confidence and economic activity, spurring demand for crude oil, IG market analyst Tony Sycamore wrote in a note.
Meanwhile, the International Energy Agency forecast in its annual World Energy Outlook on Wednesday that oil and gas demand could continue to grow until 2050.
The projection was a departure from the IEA's previous expectation that global oil demand would peak this decade, as the international body moved away from a forecasting method based on climate pledges back to one that takes into account only existing policies.
"We are not sure the IEA's change of heart in longer-term predictions means very much in the here and now," said PVM Oil Associates analyst John Evans.
The Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration will also release their monthly outlooks on Wednesday.
On the supply side, Chinese refiner Yanchang Petroleum is seeking non-Russian oil in its latest crude tender, and Sinopec subsidiary Luoyang Petrochemical has shut for maintenance as an indirect result of the sanctions, Reuters reported on Tuesday.
The measures last month were the first direct sanctions on Russia imposed by U.S. President Donald Trump since the start of his second term.
Source : Reuters.com
