Oil prices dipped in Asian trade on Tuesday as oversupply concerns outweighed uncertainty over the impact of U.S. sanctions on Russian oil majors Rosneft and Lukoil and optimism over progress toward reopening the U.S. government.
Brent crude futures fell 12 cents, or 0.2%, to $63.94 a barrel by 0426 GMT. U.S. West Texas Intermediate crude was at $59.99 a barrel, down 14 cents or 0.2%.
Both benchmarks gained around 40 cents in the previous session.
The longest government shutdown in U.S. history could end this week after the Senate approved a compromise that would restore federal funding. The deal now goes to the House of Representatives, where Speaker Mike Johnson has said he would like to pass it as soon as Wednesday.
While progress toward reopening the government has boosted markets broadly, worries about crude oversupply are keeping a lid on oil prices.
"As OPEC production increases grind on, global oil balances are acquiring an increasingly bearish hue on the supply side of the ledger with demand still trending lower in conjunction with a slowed economic growth path among major oil-consuming countries," analysts at energy advisory firm Ritterbusch and Associates said in a note.
Earlier this month, OPEC+ agreed to increase December output targets by 137,000 barrels per day, the same as for October and November. It also agreed to a pause in increases in the first quarter of next year.
Source : Investing.com