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Oil Holds Near $60 as Shutdown-End Hopes Meet Oversupply Signals

Narrower prompt spreads signal softer physical conditions.

Overview

  • WTI hovered around $60 and Brent near $64 after a modest Monday rise, leaving prices in a tight range.
  • The U.S. Senate advanced a funding bill expected to end a 40‑day shutdown, lifting near‑term demand sentiment as government operations move toward resumption.
  • Oversupply indicators persisted, with reports of U.S. stock builds in recent weeks and Vortexa estimating floating storage at 95.18 million barrels after an 11% weekly increase.
  • WTI’s prompt spread narrowed to 9 cents in backwardation, the weakest since February, pointing to less‑tight market conditions.
  • OPEC+ kept to a modest December output increase of 137,000 bpd followed by a Q1 pause, while the IEA projects a record 2026 surplus of about 4 million bpd.