Oil prices made modest gains as the U.S. Senate advanced a funding bill expected to end the 40-day government shutdown, which analysts believe could temporarily lift fuel demand.
The market’s upward movement is limited by persistent oversupply, evidenced by rising U.S. inventories and doubled Asian floating storage, even as global benchmarks have already fallen nearly 15% since mid-September.
Demand recovery is uneven, with factors like thousands of flight cancellations during the shutdown curbing jet fuel consumption, and broader macro uncertainty persisting amid delayed economic reporting.
Oil prices steadied on Monday as Washington moved toward ending a 40-day government shutdown, offering a modest boost to demand expectations but leaving markets weighed by oversupply signals and still plenty of uncertainty.
On Monday at 1:42p.m. ET, West Texas Intermediate (WTI) traded at $59.99 a barrel, up 0.40%, while Brent crude was up 0.56% to $63.92. Murban crude stood at $66.25, and U.S. natural gas slipped 0.35% to $4.330 per million Btu.
The U.S. Senate advanced a funding bill late Sunday expected to reopen federal agencies and restore delayed data releases, according to Reuters. Analysts said the move could temporarily lift fuel demand as government operations resume and transportation normalizes.
Global crude benchmarks have fallen nearly 15% since mid-September, pressured by rising non-OPEC supply and a slower-than-expected recovery in Chinese refining demand. China’s October crude imports were about 11.39 mbpd, up from September, according to customs figures compiled by Reuters.
Traders remain cautious despite Monday’s optimism. Asian floating storage has doubled since October, while U.S. inventories are climbing for a fourth straight week, reflecting persistent supply pressure, per Economies.com. OPEC+ has held off on deeper cuts heading into 2026, signaling discipline but limited appetite to tighten supply further.
Demand recovery is also uneven. Thousands of flight cancellations during the shutdown curbed jet fuel consumption and could dent November refinery margins, DTN reported.
A softer U.S. dollar and improved global risk appetite provided some support, though broader macro uncertainty persists amid delayed economic reporting. With Brent hovering in the low $60s, most analysts said the market appears range-bound absent stronger demand catalysts or new supply disruptions.
By Michael Kern for Oilprice.com
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