West Texas Intermediate crude for the US increased by 53 cents to $73.20 a barrel, up 0.7 percent from Friday’s finish.
Due to a United State federal holiday, there was no settlement on Monday, causing a temporary pause in financial transactions and leaving traders and investors eagerly awaiting the resumption of activities the following day.
US: OPEC Meeting Amid Debt Ceiling Agreement
Major oil producers will meet on June 4 and it is questionable whether they will opt to further restrict their output given the general decline in prices since the middle of April, despite the fact that the agreement on the debt ceiling has encouraged investors to buy riskier assets like commodities.
Further increases in US interest rates are also projected, which might impede economic growth and, in turn, reduce oil demand.
Due to conflicting messages from major oil producers, investors are now more focused on the result of the OPEC meeting this weekend, according to Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
Both leaders expressed optimism that the agreement will receive backing from both Democratic and Republican members.
The debt ceiling bill needs to be approved by a divided Congress by June 5 and the US House Rules Committee said that it will meet on Tuesday afternoon to examine it.
The approval of a pivotal vote on the US debt ceiling measure and a likely halt in interest rate increases in the United States raised expectations for continued demand growth in the largest oil consumer in the world. Oil prices recovered on Thursday.
Read more: Oil Prices Set For Fourth Weekly Drop Amid Demand Growth Concerns In US And China
Debt Ceiling Postponement Bill Approved
Officials from the US The Federal Reserve signaled on Wednesday that interest rates this month could be held steady.
A bill postponing the government’s debt ceiling was approved by the House of Representatives, increasing the likelihood that a calamitous default won’t occur.
By 0810 GMT, Brent crude futures were up 31 cents, or 0.4%, to $72.91 per barrel, while US To reach $68.30, West Texas Intermediate crude (WTI) gained 21 cents, or 0.3%. On both Tuesday and Wednesday, the benchmarks declined.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, will meet on June 4 and will be a major topic of discussion following conflicting signals over the likelihood of additional output cuts.
Read more: IRS Modernization Fund Slashed By $20 Billion In Debt Ceiling Agreement