Oil prices slip amid oversupply concerns despite U.S. shutdown progress

November 11, 2025 (MLN):   Oil prices eased in early Asian trading on Tuesday, erasing some of the previous session’s gains as concerns over oversupply outweighed optimism over a potential end to the U.S. government shutdown.

Brent crude futures went down by $0.32, or 0.5%, to $63.74 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.58, or 0.35, to $59.78 per barrel by [12:40 pm] PST.

Lawmakers are edging closer to ending the longest shutdown in U.S. history, following a Senate vote late Sunday on a compromise measure to restore federal funding. Final approval from Congress, however, remains uncertain.

While progress toward reopening the government has provided a boost to broader markets, persistent worries about excess crude supply are limiting gains in oil prices.

“Rising OPEC production is shifting global oil balances toward a more bearish outlook, while demand growth remains subdued due to slower economic activity in major consuming countries,” said analysts at Ritterbusch and Associates.

Earlier this month, OPEC+ announced a 137,000-barrel-per-day increase in output for December, consistent with adjustments in October and November, while also agreeing to hold production steady in the first quarter of next year.

Market watchers are also monitoring the impact of recent U.S. sanctions on Russian oil giants Rosneft and Lukoil.

In Asia, the volume of crude stored on ships has doubled in recent weeks after Western sanctions disrupted Russian oil exports to China and India. Import quotas have further restrained demand from independent Chinese refiners, prompting some buyers to source oil from the Middle East and other regions.

Looking ahead, analysts note that oil’s bearish trend could be offset if China continues to stockpile Russian crude or if India delays purchases in response to U.S. pressure.

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