Oil prices edged lower in Asian trading Wednesday, with fragile support from signs Washington is poised to end the longest U.S. government shutdown on record outweighed by persistent fears of a looming supply glut and a resilient dollar.

By 01:21 GMT, Brent January futures were down 0.2% to $65.04/bbl, while WTI eased 0.2% to $60.85/bbl.

Shutdown relief meets demand jitters

The U.S. Senate approved a bill to reopen the government, with a House vote slated for Wednesday before presidential sign-off. A resolution would unwind weeks of travel disruptions tied to staffing shortages at airports—an overhang for jet-fuel consumption—and restore key federal services. While that prospect lent crude a modest bid, it wasn’t enough to offset heavier macro headwinds.

Supply overhang back in focus

Traders remained fixated on oversupply risks into 2026, with OPEC+ having steadily raised output through 2025 and global inventories looking ample. Demand concerns—particularly in China, the world’s top importer—continue to cloud the balance and cap rallies.

Sanctions dynamics introduced fresh two-way risk. Prices found fleeting support Tuesday after reports that Russia’s Lukoil declared force majeure at an Iraqi field, highlighting potential supply curbs stemming from new U.S. measures on major Russian producers. Even so, the market’s base case remains one of sufficient barrels into the new year.

Dollar headwind

A firm U.S. dollar kept commodities on the back foot, tightening financial conditions for non-U.S. buyers and dulling the impact of shutdown-end optimism.

The setup

Near-term direction hinges on confirmation of a U.S. reopening and any follow-through in travel demand, versus the drumbeat of supply additions and soft macro signals from China. Without evidence of faster end-demand or deeper, sustained supply disruptions, rallies are likely to meet selling into resistance, keeping Brent anchored mid-$60s and WTI near $61 for now.