Brent crude futures climbed 31 cents, or 0.49%, to $63.94 per barrel by 1300 GMT, while U.S. West Texas Intermediate (WTI) crude rose 30 cents, or 0.5%, to $60.05 per barrel. Analysts attributed the modest gains to renewed investor confidence following legislative movement in Washington.
On Sunday, the U.S. Senate advanced a measure aimed at reopening the federal government after a 40-day shutdown that has disrupted federal operations, delayed food assistance programs, and caused widespread travel disruptions. Over 2,800 U.S. flights were canceled and more than 10,200 delayed on Sunday alone, marking the most severe single-day impact on air travel since the shutdown began.
PVM analyst Tamas Varga noted that lawmakers’ progress has helped restore some risk appetite in the markets, although concerns remain over the broader impact of flight cancellations on jet fuel demand.
Crude markets have faced pressure in recent weeks, with Brent and WTI losing about 2% last week, marking their second consecutive weekly decline. The downturn was driven by fears of a supply glut, following OPEC+’s decision to slightly increase output in December while pausing further production hikes in the first quarter of 2025. U.S. crude inventories have been rising, and oil stored on ships in Asian waters has doubled in recent weeks due to reduced imports into China and India following Western sanctions.
Varga highlighted a “decoupling” in the market, where growing volumes of crude stored at sea contrast with limited availability of Russian products, which continues to support fuel demand.
Adding to the supply concerns, Russian oil giant Lukoil declared force majeure at Iraq’s West Qurna-2 oilfield, according to four industry sources. The declaration comes as Western sanctions increasingly restrict Lukoil’s operations and a planned sale to Swiss trader Gunvor fell through. Companies are required to halt business with Lukoil by November 21 under U.S. sanctions, further complicating production at the field.
The combination of geopolitical tensions, production adjustments, and potential resolution of the U.S. shutdown has created a cautious optimism in crude markets, with traders closely watching developments for signs of a more sustained price recovery.