Oil prices declined on Wednesday after rising in the previous session, as markets anticipated that ending the longest U.S. government shutdown in history could boost demand in the world’s largest crude consumer.
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Brent crude futures fell by eight cents, or 0.12%, to $65.08 per barrel by 01:06 GMT, following a 1.7% increase on Tuesday. U.S. West Texas Intermediate (WTI) crude dropped seven cents, or 0.11%, to $60.97 per barrel after gaining 1.5% in the prior session.
The Republican-controlled U.S. House of Representatives is scheduled to vote Wednesday afternoon on a bill that would fund government agencies through 30 January.
Tony Sycamore, a market analyst at IG, noted in a briefing that ending the shutdown would boost consumer confidence and economic activity, thereby increasing demand for crude oil.
The conclusion of the shutdown could also revive travel and jet fuel consumption ahead of the upcoming holiday season.
On the supply side, the impact of U.S. sanctions on Russian oil companies Lukoil and Rosneft has begun to show, providing additional support to prices.
Reuters reported Tuesday that Chinese refiner Yanchang Petroleum is seeking non-Russian crude in its latest tender, while Sinopec’s Luoyang Petrochemical closed for maintenance—a direct consequence of the sanctions.
These measures, imposed last month, are the first direct sanctions by the Trump administration on Russia since the start of his second term.
(Reuters)
