Singapore: Oil prices climbed on Monday as investors grew more confident that the ongoing United States government shutdown could soon end, raising expectations of stronger fuel demand in the world’s largest oil consumer.

Brent crude futures gained 47 cents, reaching around 64 dollars and 10 cents per barrel, while U.S. West Texas Intermediate crude rose by 50 cents to about 60 dollars and 25 cents per barrel. The increase reflected renewed optimism that a resolution to the 40-day shutdown may be close, which would allow hundreds of thousands of federal workers to return to work and restore government operations.

Analysts said a reopening of the government would help lift consumer confidence and economic activity, both of which are vital for boosting energy consumption. Many traders viewed the potential end of the shutdown as a short-term signal of stronger oil demand heading into winter.

However, market experts cautioned that several supply-related risks continue to weigh on prices. U.S. crude and fuel inventories have been rising, and oil stored offshore in Asian waters has nearly doubled in recent weeks, raising concerns about a potential oversupply.

Meanwhile, OPEC and its allies have taken steps to prevent a glut. The group recently announced a small production increase for December but decided to pause any further hikes in early 2026 to keep the market balanced.

Global oil traders are also monitoring the impact of sanctions, regional tensions, and fluctuating demand in major Asian economies. While optimism about the U.S. economy has given prices a short-term lift, analysts warned that any delay in resolving the shutdown or unexpected supply surges could quickly reverse these gains.

Overall, the oil market remains cautiously optimistic. The prospect of a U.S. government reopening has provided some support, but the balance between demand recovery and rising supply continues to keep traders on edge.