Oil prices fell by about 4% on Tuesday on concerns about whether the US Congress will pass the US debt ceiling pact and as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend.
Brent crude futures dropped $3.50, or 4.5%, to $73.57 a barrel by 1651 GMT. US West Texas Intermediate (WTI) crude was down $3.29, or 4.5%, from Friday’s close, to $69.38 a barrel. There was no settlement on Monday because of a US public holiday.
Some hard-right Republican lawmakers said they might oppose a deal to raise the debt ceiling in the US, the world’s biggest oil user, while Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy remained optimistic the deal would pass.
The debt deadline coincides with the June 4 meeting of the OPEC+ and the uncertainty over whether they will increase output cuts.
Published in The Express Tribune, May 31st, 2023.
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