Oil Prices Rise on Sentiment of US Debt Ceiling Approval and OPEC+ Production Cuts

Oil prices rose today, Friday, amid a recovery in sentiment as a result of the approval of the US debt ceiling bill, at a time when markets assessed the possibility of OPEC + implementing production cuts, to support prices in the next two days.

Brent crude futures rose 71 cents to $74.99 a barrel by 06:00 GMT, and US West Texas Intermediate crude futures rose 66 cents to $70.76 a barrel, after oil prices witnessed two consecutive days of losses.

Markets received reassurance after the passage of a bill in Congress suspending the US debt ceiling of $ 31.4 trillion, in addition to indications earlier that the Federal Reserve may stop raising interest rates.

Yesterday evening, the US Senate passed the debt ceiling bill, avoiding a catastrophic debt default that would have sent a violent shock to the financial markets.

Market sentiment was also supported by US crude inventories data released Thursday by the Energy Information Administration, which indicated a jump in crude imports last week.

On the related side, the focus of investors has shifted to a meeting to be held on June 4 of the Organization of the Petroleum Exporting Countries and its allies, including Russia, an alliance known as OPEC +.

During the meeting, ministers from major oil-producing countries will decide on possible further production cuts to support government revenues.

Expectations and indicators varied regarding such a possible cut, as Reuters and analysts from banks including HSBC and Goldman Sachs said that it is unlikely that further production cuts will be implemented from OPEC +, and that the alliance will adopt a wait-and-see approach.

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However, other market observers indicated that weak data for the manufacturing sector from China and the United States may suggest that OPEC + will take a decision to cut further.

2023-06-02 12:02:38
#Oil #rises #Congress #passes #debt #ceiling #bill

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