Crude oil prices rose today, Monday, May 29, 2023, after US President Joe Biden and House Speaker Kevin McCarthy reached a preliminary agreement on the debt ceiling in the United States, which would protect the country with the largest economy in the world and the largest consumer. oil globally, from faltering.
Although benchmark Brent crude prices have risen by nearly 1%; Expectations and concerns about another interest rate hike by the US Federal Reserve limited gains, according to Reuters.
And crude oil prices fell during the past week, ending on May 26, recording their lowest level during the month, despite recording a 1% increase at the end of it, according to information seen by the specialized energy platform.
Crude oil prices today
By 6:30 a.m. GMT (9:30 a.m. Mecca time), Brent crude futures – for delivery in July 2023 – were up 0.9%, or by 66 cents, at $77.61 a barrel.
US West Texas Intermediate crude futures rose by about 1%, by 75 cents, to record about $73.42 a barrel, according to data seen by the specialized energy platform.
The rise comes despite expectations that the oil trade movement will calm down today, Monday, May 29, due to holidays in the United Kingdom and the United States, but it was supported by US President Joe Biden and Speaker of the House Kevin McCarthy, on Saturday, in principle regarding suspending the debt ceiling.
Senior officials in the United States had reached an agreement on suspending the US debt ceiling, amounting to about $31.4 trillion, in addition to limiting government spending over the next two years, an agreement that members of the Democratic and Republican parties will vote on.
Oil price analysis
CMC Markets analyst Tina Ting said the temporary debt deal triggered a rebound in risky assets; Including crude oil, explaining that the rise in crude oil prices was caused by the short-term debt deal, as monitored by the specialized energy platform.
Crude oil prices rose in the wake of the debt deal, which coincided with warnings from Saudi Energy Minister Prince Abdulaziz bin Salman to oil traders against betting that prices will decline, a warning that was taken as a sign that OPEC may announce a larger production cut during its June 4 meeting. next June, according to Reuters.
At the same time, statements by officials and sources in the Russian oil sector indicate; Including Deputy Prime Minister Alexander Novak, the world’s third largest oil producer tends to maintain production at current levels.
Investors await manufacturing and services data from China, the world’s largest oil importer, this week, as well as US non-farm payroll data, due on Friday, for clues about economic growth and oil demand.
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