New york: Oil prices rose on Monday amid optimism that the US government shutdown is nearing its end, which could boost demand in the world’s largest oil consumer and offset concerns about rising global supplies. Brent crude futures rose 0.71% to $64.08 a barrel, while West Texas Intermediate (WTI) crude also climbed 0.8% to $60.23 a barrel.
According to Yemen News Agency, an end to the historic government shutdown, now in its 40th day, seems imminent after the Senate moved on Sunday to vote on reopening the federal government. This development is seen as a positive signal for the oil market, as reopening the government could potentially enhance economic activity and increase energy consumption.
Last week, both Brent and WTI crude saw declines of about 2%, marking their second consecutive weekly drop. This was primarily due to concerns about a supply glut in the global oil market. However, the prospect of the US government resuming operations appears to have alleviated some of these concerns, providing a boost to oil prices at the start of the week.