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Oil Edges Higher as Shutdown Hopes Counter Supply Glut Fears

Optimism over a possible end to the U.S. shutdown offsets supply-glut worries.

Overview

  • Oil prices ticked higher, with Brent near $64 and WTI around $60 in early Monday trading.
  • Hopes that the U.S. shutdown will soon end lifted demand sentiment after the Senate moved toward a reopening vote.
  • OPEC+ has loosened output and approved a modest December increase, reinforcing concerns about a growing surplus after two weekly declines.
  • Western sanctions targeting Rosneft and Lukoil are reshaping trade, with Hungary granted an exemption and more crude held in floating storage across Asia.
  • Lukoil faces rising disruption before a Nov. 21 cutoff deadline after a planned asset sale to Gunvor fell through, while markets await fresh outlooks from OPEC, the IEA and the EIA this week.