New Delhi [India], November 10 (ANI): Oil prices surged on Monday following the end of the US government shutdown, though market experts maintained that the overall outlook for crude remains bearish.
Crude oil prices extended gains for a second consecutive session, rising by 0.98 per cent to USD 60.20 per barrel. Market participants viewed the development as a sign of easing policy uncertainty, with optimism that the resolution of the shutdown would help restore confidence in the US economy.
US senators on Sunday reached a bipartisan deal to reopen the government after a record 40-day shutdown. The agreement, backed by at least eight Senate Democrats, funds the government through January 30 and includes a vote on extending Affordable Care Act subsidies in December. The Senate is scheduled to vote on the proposal between 8:30 and 9 p.m. ET (7:30 a.m. IST Monday), paving the way for the government to resume normal operations.
Despite the short-term recovery, experts cautioned that the broader oil market remains under pressure. Energy expert Narendra Taneja told ANI, “The oil price scenario will remain bearish until we see steady growth in demand. The expected end of the US government shutdown may help improve oil market sentiment, leading to a slight price increase. Still, unless there is significant growth in demand or a major supply disruption due to geopolitical or natural factors, market sentiment will stay bearish.”
According to analysts, the bipartisan deal has eased short-term policy concerns, but global demand trends and supply dynamics continue to weigh on the market.
Riya Singh, Research Analyst – Commodities and Currency at Emkay Global Financial Services, said that although oil prices have rebounded, market caution persists. “Despite this rebound, the broader oil market remains cautious amid persistent supply-side pressures. OPEC+ and its allies have modestly raised production for December but signalled restraint in further increases during the first quarter of 2026 to prevent oversupply. Rising output from non-OPEC producers continues to raise market balance concerns,” she said.
Overall, while the end of the US government shutdown has provided a short-term boost to crude prices, analysts believe that without sustained demand growth or major supply disruptions, the crude oil market is likely to remain bearish in the coming months. (ANI)
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