WTI climbs amid shutdown resolution hopes
West Texas Intermediate (WTI) crude oil prices extended gains for a second consecutive session, trading around $60.00 per barrel during Monday’s Asian hours. The rise reflects growing optimism that the United States government shutdown may soon be resolved, potentially boosting demand in the world’s largest oil-consuming nation.
Bloomberg reported that the record-breaking shutdown is nearing its end, as a group of centrist Senate Democrats agreed to support a deal to reopen the government and fund key departments and agencies for the coming year. The agreement would ensure back pay for federal employees and allow states to resume delayed federal transfers. Some departments would be funded through January 30, while others would receive full-year allocations.
Despite the bullish sentiment, crude markets remain under pressure from rising global supply. Output continues to expand among OPEC+, including Russia, and non-member producers, raising fears of a supply glut. OPEC+ has agreed to a modest increase in production for December but paused further hikes in the first quarter to avoid oversupply.
Traders are closely watching the impact of United States sanctions targeting major Russian oil firms, including Rosneft and Lukoil. As Washington intensifies pressure over the Ukraine conflict, countries heavily reliant on Russian crude—such as China and India—are actively diversifying their import sources to mitigate risk.