Oil prices fell slightly in Asian trade on Wednesday, taking limited support from increasing signs that an end to the longest ever U.S. government shutdown was at hand.
Prices remained under pressure from persistent concerns over a looming supply glut, while resilience in the dollar also kept oil on the backfoot.
Brent oil futures for January fell 0.2% to $65.04 a barrel, while West Texas Intermediate crude futures fell 0.2% to $60.85 a barrel by 20:21 ET (01:21 GMT).
US govt reopening vote scheduled for Wednesday The U.S. Senate on Tuesday approved a bill to reopen the government, with the Republican-controlled House Of Representatives indicating it will vote to approve the measure on Wednesday.
The bill, which will then need to be signed into law by President Donald Trump, stands to end the longest ever shutdown in U.S. history, at about 42 days as of Tuesday.
The prospect of the U.S. government reopening offered some support to oil prices, especially as a suspension of several key federal services disrupted travel across the country.
Disruptions at major U.S. airports, due to shortages in air traffic and safety staffing, saw thousands of flights being cancelled across the country. This in turn raised concerns over disruptions in fuel demand.
Oil markets weigh oversupply fears, sanction risks Oil prices found some strength on Tuesday after reports showed Russia’s Lukoil declaring force majeure at an Iraqi oilfield, reflecting the impact of new, strict U.S. sanctions on Moscow’s largest oil producers.
The sanctions, which were imposed last month, stand to curb global fuel supplies, and could offset the impact of a looming supply glut in the coming months.
Despite Tuesday’s gains, oil prices were still trading squarely lower so far in 2025, amid increasing anxiety over a supply glut in 2026. This was driven chiefly by the Organization of Petroleum Exporting Countries and allies, the OPEC+, steadily increasing production so far in 2025.
Sluggish demand, especially in top oil importer China, is also expected to contribute towards a potential supply overhang.
