Oil prices slip as bearish outlook outweighs US Government reopening

But the reopening of the US Government could boost consumer confidence and economic activity, spurring demand for crude oil, IG market analyst Tony Sycamore wrote in a note.

The US Republican-controlled House of Representatives is set to vote later on Wednesday on a bill, already signed off by the Senate, that would restore funding to government agencies through January 30.

"So while the long-term demand outlook remains robust, the short-term outlook still points to ample supply limiting the upside potential," Saxo Bank’s Hansen added.