Oil prices were steady during Wednesday's Asian trade as investors looked ahead to the expected reopening of the United States government, which could help revive demand in the world’s largest crude consumer after weeks of disruption.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures slipped 14 cents, or 0.2%, to US$65.02 per barrel, while U.S. West Texas Intermediate (WTI) crude fell 15 cents, or 0.3%, to US$60.89 per barrel.
Both benchmarks had gained 1.7% and 1.5%, respectively, in the previous session.
Markets were cautiously optimistic ahead of a House of Representatives vote scheduled for Wednesday afternoon on a bill, already approved by the Senate, that would restore funding to federal agencies through 30 January.
An end to the record-long government shutdown, which has caused widespread travel disruptions and delayed tens of thousands of flights, could also lift jet fuel consumption in the coming weeks as the U.S. heads into the holiday travel season.
On the supply front, U.S. sanctions targeting Russia’s two largest oil producers, Lukoil and Rosneft, continued to ripple through global markets, providing some support for prices.
“U.S. sanctions on Russian exports appear to be impacting Indian purchases, with refiners from that country failing to buy any Russian crude for December,” ANZ analysts noted, adding that traders were also awaiting fresh monthly market reports from OPEC and the International Energy Agency later this week.
Chinese refiner Yanchang Petroleum has reportedly sought non-Russian crude in its latest tender, while Sinopec subsidiary Luoyang Petrochemical has shut down for maintenance as an indirect consequence of the sanctions, according to Reuters.
