Singapore, May 29 (BNA): Oil prices rose on Monday after US leaders reached a tentative debt ceiling deal that could avert a default in the world’s largest economy and oil consumer, although concerns about a further hike Interest rates limited gains.
Brent crude futures rose 66 cents, or 0.9 percent, to $77.61 a barrel by 0247 GMT, while US West Texas Intermediate crude was $73.42 a barrel, up 75 cents, or 1 percent. Reuters reported that trade is expected to cool down on Monday due to holidays in the United Kingdom and the United States.
US President Joe Biden and House Speaker Kevin McCarthy on Saturday finalized an agreement in principle to suspend the $31.4 trillion debt ceiling and limit government spending for the next two years. On Sunday, the two leaders expressed confidence that members of the Democratic and Republican parties would vote in support of the deal.
The deal and being close to avoiding a US debt default has renewed investor appetite for riskier assets such as commodities.
MI