WTI holds gains near $60.00 amid possible end of US government shutdown

• WTI price rises on optimism that the US government shutdown could reach a resolution.
• Bloomberg reported centrist Senate Democrats backed a deal to reopen the government and fund key departments for the next year.
• Traders monitor the impact of US sanctions on Russia's top Oil firms, Rosneft and Lukoil, amid rising geopolitical tensions.

West Texas Intermediate (WTI) Oil price extends its gains for the second consecutive session, trading around $60.00 per barrel during the Asian hours on Monday. Oil prices rise on optimism that the US government shutdown could end soon, boosting demand in the world's top Oil consumer.

Bloomberg reported on Monday that the record-breaking US government shutdown is nearing an end. A group of centrist Senate Democrats agreed to support a deal to reopen the government and fund some departments and agencies for the next year. The agreement would ensure federal employees receive back pay and allow states to resume delayed federal transfers. It would fund some departments through January 30, while others would receive full-year allocations.

Crude prices faced challenges as Oil output continues to expand among both OPEC+, the Organization of the Petroleum Exporting Countries, and its allies, including Russia, and non-member producers, fueling fears of a global glut. OPEC+ decided to increase output slightly in December, but it also paused further hikes in the first quarter, wary of a supply glut.

Meanwhile, Traders kept a close eye on the impact of US sanctions targeting Russia's major Oil firms, Rosneft and Lukoil, as Washington intensifies pressure on Moscow over the Ukraine conflict. Nations heavily dependent on Russian crude, such as China and India, are now diversifying their Oil imports amid growing sanctions risks.