At 11:08 GMT, Light Crude Oil Futures are trading $59.86, up $0.11 or +0.18%.
Government Shutdown Progress Sparks Risk-On Sentiment
News that the U.S. Senate passed the first stage of a deal to end the 40-day government shutdown injected some risk appetite into markets, including oil. Traders are betting that a resolution could revive government spending and lift demand in the world’s top oil-consuming economy. The procedural vote clears a path to fund the government through January, pending House approval and the president’s signature.
Still, demand optimism remains cautious. Over 2,800 U.S. flights were canceled Sunday, marking the most significant air travel disruption since the shutdown began, raising concerns about short-term jet fuel consumption. That said, if the shutdown resolution holds, some of that lost demand could snap back in the coming weeks.
Supply Concerns Still in Play as Inventories Build
Even with a potentially bullish broader economic backdrop, supply-side pressures are capping rallies. WTI and Brent both posted around 2% losses last week—marking the second consecutive weekly drop—on the back of oversupply concerns. OPEC+ is bumping up production modestly in December but holding off on further hikes in Q1, signaling caution.
Meanwhile, U.S. crude inventories are climbing, and floating storage in Asia is surging. Tighter sanctions on Russian barrels have rerouted supply, but Chinese demand is lagging due to limited import quotas. That disconnect—between rising global stockpiles and patchy demand from major consumers—is keeping a ceiling on prices.
Russia Headlines Add Noise, But No Clear Impact Yet
Russia remains a wildcard. Attacks on the Tuapse refinery and mounting disruptions at Lukoil, with a looming U.S. deadline to sever business ties by November 21, add geopolitical risk. However, these events haven’t translated into immediate supply shocks or a clear directional move for crude, at least not yet.
