Khaberni - Oil prices fell by more than 4% at the end of trading on Wednesday, November 12, 2025, amid concerns about the continuation of the longest government shutdown in US history and its potential implications for global energy demand.
According to the monitoring of the specialized energy platform for global crude price movements, concerns continue to escalate about the situation regarding the government shutdown and its impact on consumer confidence in the United States.
The possibilities extend to the travel and aviation sectors, after their halt disrupted thousands of flights and reduced fuel consumption for aircraft in recent days.
These developments are likely to affect seasonal demand levels as the year-end holidays approach, which in turn contributes to fluctuations in crude oil prices.
Oil prices today
At the end of the session, the futures prices for Brent crude for January 2026 delivery dropped by 3.8% to reach $62.71 per barrel.
The futures prices for West Texas Intermediate (WTI) crude for December 2025 delivery also fell by 4.2% to reach $58.49 per barrel, according to real-time data monitored by the Washington-based energy platform.
Oil prices had risen at the end of the trading session yesterday, Tuesday, November 11, by 1.7%, raising the price of standard Brent crude above $65 per barrel, up from $64 at the start of trading.
This drop comes after strong gains in the previous session, amidst profit-taking activities by traders who benefited from the sudden price rise.
Oil Price Analysis
Traders, as part of their efforts to analyze oil prices, expect these prices to stabilize near their current levels until the results of the vote in the US House of Representatives regarding reopening government institutions are clear.
Analysts believe that Brent crude surpassing the $65 per barrel level indicates a relative improvement in morale, after weeks of volatility resulting from political and economic crises in the United States.
Analysts at "IG Markets" believe that ending the US government shutdown would bolster domestic energy demand, especially in the transport and manufacturing sectors, which could support prices during the last quarter of the year.
Economic expert Tony Sicamore mentioned that reopening the government would boost consumer confidence and public spending, which could reflect an increase in factory activity and higher oil consumption.
He also noted that the markets are closely monitoring the repercussions of the new US sanctions on Russia, targeting companies like "Lukoil" and "Rosneft," as these are expected to reduce Russian supplies.
The effects of the sanctions are beginning to show, as the "Yanchang Petroleum" refinery in China seeks non-Russian oil supplies, while the "Luoyang Petrochemical" company has halted operations for maintenance due to the impact of these sanctions.
Analysts believe that these actions may impose additional pressures on global supplies, potentially enhancing the upward trend of oil prices in the short term, according to what was reported by Reuters.
In light of these developments, it is likely that Brent crude oil prices will remain above the $65 per barrel level in the coming days, unless sudden indications of a slowdown in global demand appear.
In a related context, the US Energy Information Administration has raised its oil price forecasts for 2026 by about 5.7%, and also increased its estimates for US crude production, according to the monthly report issued Wednesday, November 12.
According to the report, the average spot price for Brent crude is expected to reach $54.92 per barrel in 2026, compared to the October 2025 estimates of $52.16.
Meanwhile, the price of West Texas American crude is expected to rise by 5.3% to $51.26 per barrel this year, compared to $48.16 in previous forecasts.
