Oil prices held steady as calls to end the US government shutdown boosted the broader market, with crude traders also looking ahead to a data-heavy week that will provide insight into whether a global surplus is forming.

West Texas Intermediate prices held near $60 a barrel after two weekly declines, while Brent traded around $64. In the US, the Senate took a major step toward reopening the US government after the longest-ever shutdown, which helped stocks and most commodities.

Meanwhile, commodity trading advisors have deepened their bearish stance over the past week, according to data from Bridgeton Research Group. Robotic traders are currently short 63% of Brent and WTI, and are ready to increase their short positions if futures prices fall by another one percent, the firm added.

Crude oil has fallen in five of the past six weeks as concerns over oversupply intensify. The Organization of the Petroleum Exporting Countries (OPEC) and its allies have eased production curbs in an apparent bid to gain market share, while drillers outside the alliance, including the US, have also been adding barrels.

US sanctions also remain a focus after the Trump administration last month targeted Russia's Rosneft PJSC and Lukoil PJSC in an effort to increase pressure on the Kremlin to end its war in Ukraine. The latter declared force majeure on shipments from the West Qurna 2 field in Iraq, according to a person familiar with the matter, which gives it the right to avoid contractual obligations.

Hungary, which relies on Moscow for energy supplies, won an exemption from Russian oil restrictions after talks with Washington.

Lukoil's measures provided some support for oil futures, said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. "However, the fundamentals remain weak—Dubai spreads continue to weaken, Asian demand is well-supplied, and Saudi Arabia and Iraq have lowered official selling prices," she added.

OPEC is scheduled to release its monthly analysis on Wednesday, while the International Energy Agency (IEA) releases its annual energy outlook on the same day, followed by its regular monthly snapshot on Thursday. (alg)

Source: Bloomberg