Oil prices rose on Monday amid optimism that the US government shutdown is nearing its end, which could boost demand in the world's largest oil consumer and offset concerns about rising global supplies.
Brent crude futures rose 0.71% to $64.08 a barrel.
US West Texas Intermediate crude also rose 0.8% to $60.23 a barrel.
The end of the historic government shutdown, which entered its 40th day, is now close after the Senate moved on Sunday to vote on reopening the federal government.
Tony Sycamore, a market analyst at the International Crisis Group, told Reuters that the imminent reopening is a welcome boost, as it will restore wages to 800,000 federal employees and restart vital programs that will help boost consumer confidence, activity, and spending.
Sycamore added that this “should also help improve risk sentiment in the markets, and could push West Texas Intermediate crude prices toward the $62 per barrel level.”
Oil prices decline
Brent crude and West Texas Intermediate crude fell by about 2% last week, marking their second consecutive weekly decline, amid concerns about a supply glut.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) reached an agreement on a slight increase in production during December, while suspending any further increases in the first quarter of this year.
In the United States, the volume of crude oil stored on ships in Asian waters has doubled in recent weeks, after tightened Western sanctions curtailed imports by China and India. Shortfalls in import quotas have also dampened demand from independent Chinese refiners, amid concerns about a supply glut.
