Oil prices rose in Asian trade on Monday amid hopes that an end to the long-running U.S. government shutdown will help boost demand in the world’s biggest fuel consumer.
Crude also benefited from some bargain buying after losing about 2% last week, as traders fretted over a looming supply glut and weakening global demand. Strength in the dollar also weighed on crude.
Brent oil futures for January rose 0.7% to $64.06 a barrel, while West Texas Intermediate crude futures rose 0.7% to $60.03 a barrel by 20:32 ET (01:32 GMT).
Positive inflation data from top oil importer China also aided sentiment.
US govt shutdown seen ending amid some Democrat support for spending bill Several media reports on Sunday evening suggested that a group of Democrats had reached a deal to back a Republican spending bill to fund the government until January 30, 2026.
Voting was still underway in a late-Sunday session in the Senate.
But the reports drummed up hopes that an end to the worst U.S. government shutdown in history was now in sight.
The shutdown had disrupted travel, especially by air, in several major cities, and had ramped up concerns over slowing fuel demand in the country.
An end to the shutdown could set the stage for strong air travel during the winter holidays, which is usually positive for oil.
OPEC, IEA monthly reports awaited Focus among oil markets this week will be on monthly reports from two key industry groups– the Organization of Petroleum Exporting Countries, and the International Energy Administration.
Both groups have widely differing outlooks on oil demand and supply in the coming months, although investors use commentary from both reports to gain a clearer picture of oil markets.
The OPEC and IEA reports are due on Wednesday and Thursday, respectively.
The OPEC has been a key point of anxiety for oil markets, especially after the producer group hiked output by nearly 3 million barrels per day so far in 2025. These hikes drummed up concerns over a looming supply glut.
Fears of oversupply and weakening global demand, amid sluggish growth, battered oil prices in recent months.
