Oil retreats on oversupply worries

(Reuters) -Oil prices dipped in early Asian trade on Tuesday, trimming gains from the previous session as oversupply concerns outweighed optimism over a potential resolution to the U.S. government shutdown.

Brent crude futures fell 13 cents, or 0.2%, to $63.93 a barrel by 0100 GMT. U.S. West Texas Intermediate crude was at $60 a barrel, also down 13 cents, or 0.2%.

Both benchmarks gained around 40 cents in the previous session.

The longest government shutdown in U.S. history could end this week after a compromise that would restore federal funding cleared an initial Senate hurdle late on Sunday, though it was unclear when Congress would give its final approval.

While progress toward reopening the government has boosted markets broadly, worries about crude oversupply are keeping a lid o