oil and gas — Oil Prices have continued to go up as crisis in Ukraine and Russia rages on Image: Financial Tribune

Oil Prices Rise After U.S. Debt Ceiling Deal

Last updated May 29, 2023

Oil prices rose on Monday after U.S. leaders reached a tentative debt ceiling deal, although concerns about further interest rate hikes capped gains.

Brent crude futures climbed 66 cents, or 0.9%, to $77.61 a barrel by 0247 GMT, while U.S. West Texas Intermediate crude was at $73.42 a barrel, up 75 cents, or 1%.

Trade is expected to be subdued on Monday because of UK and U.S. holidays.

U.S. President Joe Biden and House Speaker Kevin McCarthy on Saturday finalised an agreement in principle to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years.

Both leaders expressed confidence on Sunday that members of the Democratic and Republican parties will vote to support the deal.

Reaching the deal and coming closer to avoiding a default on U.S. debt, renewed investor appetite for riskier assets such as commodities.

Last week, Brent and WTI rose by more than 1%, gaining for a second week.

Reuters/Hauwa Abu