Oil prices climbed Monday amid optimism that the U.S. government shutdown may soon end, boosting demand in the world’s largest oil consumer.
Brent crude futures rose 47 cents to $64.10 a barrel. U.S. West Texas Intermediate was up 50 cents at $60.25 a barrel.
Impact of Government Shutdown
The U.S. shutdown, now in its 40th day, has paused federal programs and delayed pay for 800,000 workers.
Analysts said the reopening is expected to restore consumer confidence, spending, and overall economic activity.
“This should also help improve risk sentiment across markets and cause a rebound in WTI prices toward $62 a barrel,” a market analyst said.
Supply Considerations
Brent and WTI fell about 2% last week amid supply concerns.
OPEC+ agreed to a slight output increase in December but paused further hikes in early 2026, citing oversupply worries.
U.S. crude inventories are rising, while oil stored aboard ships in Asia has doubled after sanctions affected imports from Russia.
Indian refiners have shifted to Middle East and American sources to replace restricted Russian supply.
Global Factors
Russian oil producer Lukoil faces disruptions as U.S. sanctions come into effect and a hoped-for sale collapses.
A one-year U.S. exemption for Hungary on Russian oil imports adds to oversupply concerns.
The resolution of the U.S. shutdown is seen as a key factor in near-term demand recovery.
Prices remain sensitive to both supply disruptions and changing demand in major consuming markets.