The near‑resolution of the U.S. government shutdown is proving more than a political sideshow for commodities. With Senate leadership pushing through a funding measure to avoid a prolonged federal closure, oil prices have responded with strength. West Texas Intermediate reclaimed ground above $60 a barrel, while Brent moved towards $64.
During the shutdown, demand signals were muted. Aviation activity fell, federal spending slowed, and consumer sentiment took a hit. That backdrop contributed to oil’s softer tone in recent weeks. But now, with key government functions set to resume and workers returning to payrolls, the potential uplift in economic activity is back in focus. The result is a subtle but meaningful shift in sentiment.
This combination of improved demand visibility and manageable supply gives oil a clearer path to stabilise at firmer levels. Currency dynamics may also lend support. As shutdown fears fade, pressure on the U.S. dollar has eased slightly, making oil more attractive in global terms. That, combined with potential restocking and more stable economic indicators, creates room for a more balanced, upward‑tilting outlook.
Union Jack Oil plc (LON:UJO) is an oil and gas company with a focus on onshore production, development, exploration and investment opportunities within the United Kingdom and the United States of America hydrocarbon sector.
