SINGAPORE — Oil prices held steady on Wednesday after posting strong gains in the previous session, as markets awaited a U.S. congressional vote that could end the longest government shutdown in U.S. history, potentially boosting fuel demand in the world’s largest crude consumer.
Brent crude futures edged down 8 cents, or 0.12%, to $65.08 a barrel by 01:06 GMT, following a 1.7% rise on Tuesday. U.S. West Texas Intermediate (WTI) slipped 7 cents, or 0.11%, to $60.97, after climbing 1.5% in the prior session.
The Republican-controlled House of Representatives is expected to vote later on Wednesday on a bill — already approved by the Senate — to restore funding to federal agencies through January 30.
According to Tony Sycamore, market analyst at IG, a government reopening would likely boost consumer confidence and economic activity, supporting oil demand.
“The end of the shutdown could lift travel and industrial output, just as the holiday season approaches,” Sycamore said in a note.
The weeks-long shutdown has disrupted tens of thousands of flights, weighing on jet fuel consumption. A resolution could prompt a rebound in air travel and fuel use in the coming days.
On the supply side, oil prices continued to find support from the U.S. sanctions imposed on Russia’s top oil producers, Lukoil and Rosneft, which are beginning to affect global supply chains.
According to Reuters, Chinese refiner Yanchang Petroleum is now seeking non-Russian crude in its latest tender, while Sinopec’s Luoyang Petrochemical plant has halted operations for maintenance — an indirect impact of the sanctions.
The measures, introduced last month, mark the first direct sanctions on Russia imposed by President Donald Trump since the start of his second term.
