WASHINGTON (dpa-AFX) - Oil prices edged higher on Tuesday as the longest federal government shutdown in U.S. history appeared to be nearing an end and investors pondered over the impact of U.S. sanctions on Russian oil companies.
The upside, however, remained capped by oversupply concerns as OPEC+ production continues to rise.
Benchmark Brent crude futures edged up by 0.4 percent to $64.30 a barrel while WTI crude futures rose 0.30 percent to $60.31.
After the U.S. Senate approved a compromise solution to restore federal funding, the bill will now be sent to the House of Representatives, where Speaker Mike Johnson said he would like to approve it as early as Wednesday.
Analysts said the end to government shutdown could pave way for a rebound in air travel during winter holiday season, when oil demand typically rises.
That said, markets remain on edge over a potential supply glut in the coming year.
Earlier this month, OPEC+ agreed a small oil output increase for December and a pause in increases in the first quarter of next year.
In its recent report, the International Energy Agency forecasted that the global oil surplus would reach around 4 million barrels per day in 2026, marking the largest annual surplus on record.
Despite potential supply disruptions, this excess could lead to an overhang in oil inventories and weigh down on prices, it was said.
Upcoming reports from OPEC and the International Energy Agency (IEA) could signal an impending global surplus.
OPEC will release its monthly market analysis on Wednesday, followed by the IEA's annual outlook on the same day. The IEA's regular monthly report is due on Thursday.
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