Oil prices were little changed on Wednesday after rising in the previous session amid expectations that an end to the longest-ever US government shutdown could boost demand in the world’s biggest crude consuming nation.
Brent crude futures slipped 8 cents, or 0.12 per cent, to $65.08 a barrel by 0106 GMT after gaining 1.7 per cent on Tuesday. US West Texas Intermediate crude was down 7 cents, or 0.11 per cent, to $60.97 a barrel, after climbing 1.5 per cent in the previous session.
The US 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.
An end to the US government shutdown, which has disrupted tens of thousands of flights in the last few days alone, could also lead to a rebound in travel and jet fuel consumption ahead of the upcoming holiday season.
On the supply side, the fallout is emerging from US sanctions against Russia’s two biggest oil producers, Lukoil and Rosneft, further supporting prices.
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 US President Donald Trump since the start of his second term.
