Oil Prices Decline Amid Expectations of U.S. Government Shutdown Resolution

Oil prices decreased during trading on Wednesday but retained most of their gains from the previous session, as expectations rise that the end of the longest government shutdown in U.S. history could bolster demand in the world's largest oil-consuming nation.

Brent crude oil dropped 0.49% to $64.84 per barrel, while U.S. West Texas Intermediate fell 0.56% to $60.69, following a rise of over 1.5% on Tuesday.

The U.S. House of Representatives is set to vote today on a bill aimed at restoring funding for government agencies through the end of January next year. This could revive economic activity and consumer confidence, potentially boosting energy and fuel consumption, especially with the holiday season approaching.

On the supply side, U.S. sanctions against Russian oil companies "Lukoil" and "Rosneft" are beginning to impact the markets, as Asian refiners, including China's "Yanchang Petroleum," seek alternative oil sources, which may help support prices.

Meanwhile, the International Energy Agency (IEA) in its annual report anticipates that global demand for oil and gas will continue to grow until 2050. The agency revised its previous estimates regarding the rapid transition to clean energy, in light of U.S. pressure to promote fossil fuel production.

Under the current political scenario, the IEA projects that global oil demand could reach 113 million barrels per day by mid-century, a 13% increase from 2024 levels, indicating that the world economy remains reliant on oil despite calls for a shift to cleaner energy.