Brent crude futures slipped by 8 cents, or 0.12%, settling at $65.08 per barrel, after gaining 1.7% on Tuesday. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell by 7 cents, or 0.11%, to close at $60.97 per barrel, following a 1.5% increase in the prior session.
The Republican-controlled U.S. House of Representatives is expected to vote Wednesday afternoon on a bill already passed by the Senate, that would restore government funding until January 30.
According to Tony Sycomore, an analyst at IG Markets, the reopening of government offices is likely to boost consumer confidence and economic activity, thereby driving up demand for crude oil.
The end of the shutdown, which has already disrupted thousands of flights is also expected to increase travel and jet fuel consumption ahead of the upcoming holiday season.
On the supply side, U.S. sanctions on Russia’s two largest oil producers, Lukoil and Rosneft, continue to show their impact, offering additional support to global oil prices.
