Oil prices rise as US Senate approves deal to end government shutdown

Oil prices moved higher in early Asian trading on Monday after the U.S. Senate passed a funding deal that could bring an end to the government shutdown. By morning, West Texas Intermediate (WTI) had reached $60.20 per barrel and Brent crude was trading at $64.05, with both benchmarks gaining around 0.7%.

Senators reached the agreement ahead of a Sunday evening session, allowing them to advance a House-approved short-term funding bill. The measure was passed with the backing of eight Democrats. The deal includes a “minibus” package of three long-term spending bills and promises Democrats a vote on extending health insurance tax credits.

Markets reacted positively to the prospect of government operations resuming. If finalized, the deal would see roughly 800,000 federal workers receive back pay, social programs restart, and key public services resume. IG market analyst Tony Sycamore told Reuters that the reopening should help “improve risk sentiment across markets.”

Sentiment indicators reflect that optimism. On prediction platform Polymarket, the odds of the shutdown ending before November 16 now stand at about 95%. However, final approval is still required from the House of Representatives, and the President must sign the bill before the shutdown officially ends.

For the oil market, restoring government operations is expected to support U.S. demand for goods, services, and energy. Increased risk appetite in financial markets also tends to shift investment into commodities like crude oil, adding further support to prices.