Petroleum prices fell nearly 1% on Wednesday, weighed down by oversupply in the market, while expectations that an end to the longest-ever U.S. government shutdown could boost oil demand curbed losses.
Brent crude futures slipped 60 cents, or 0.9%, to $64.56 U.S. a barrel early Wednesday morning after gaining 1.7% on Tuesday. U.S. West Texas Intermediate crude was down 62 cents, or around 1%, at $60.42 a barrel, after climbing 1.5% in the previous session.
Analysts have previously highlighted that crude oversupply is curbing price gains. Earlier this month, the Organization of the Petroleum Exporting Countries and their allies (known as OPEC+) agreed to a pause in increasing its output in the first quarter of next year, after having unwound its cuts to production since August this year.
But the reopening of the U.S. government could boost consumer confidence and economic activity, spurring demand for crude oil, according to some experts.
The U.S. Republican-controlled House of Representatives is set to vote later on Wednesday on a bill, already signed off by the Senate, that would restore funding to government agencies through January 30.
Meanwhile, the International Energy Agency forecast in its annual World Energy Outlook on Wednesday that oil and gas demand could continue to grow until 2050.
OPEC and the U.S. Energy Information Administration will also release their outlooks on Wednesday.
