Oil prices fell on Tuesday as concerns over a looming supply glut outweighed optimism about the reopening of US government and uncertainties over the impact of US sanctions on Russian oil majors.
International benchmark Brent crude was trading at $63.67 per barrel at 09.50 a.m. local time (0650 GMT), down around 0.43% from the previous close of $63.95.
US benchmark West Texas Intermediate (WTI) also decreased by about 0.44% to $59.76, compared to $60.03 in the prior session.
on Sunday Democrats and Republicans in the US Senate reached a deal on a temporary funding bill, marking a crucial step toward reopening the federal government after a 40-day shutdown.
Speaking at a swearing-in ceremony at the Oval Office, US President Donald Trump said he supported the bill passed by the Senate to reopen the federal government.
The shutdown had caused major disruptions to air traffic in large cities, raising concerns that fuel demand could weaken. Experts noted that reopening the government could boost air travel during the winter holiday season and support oil demand.
However, expectations of an oversupplied market next year continue to weigh on prices.
Production policies of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are fueling concerns about potential oversupply in the oil market.
At its Nov. 2 meeting, the group cited a stable global economic outlook and low inventory levels and decided to raise production by 137,000 barrels per day. However, members agreed to pause output increases in the first quarter of 2025 due to seasonal factors.
While the move slightly eased supply concerns in the short term, OPEC+'s tendency to continue production hikes has strengthened oversupply risks, putting downward pressure on prices. The group's next meeting is scheduled for Nov. 30.
Meanwhile, uncertainty surrounding the impact of US sanctions on Russian oil giants Rosneft and Lukoil also contributed to the decline in prices.
After Bulgaria approved legal changes on Nov. 7 allowing state control of Lukoil's local refinery, authorities said additional security measures were introduced around refinery sites.
Experts said sanctions may briefly disrupt Russian oil flows to key buyers such as China and India, but analysts expect the effect to be short-lived amid persistent oversupply concerns.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
