2023-05-26 20:02:44
Oil prices rose today, Friday, as US officials seem close to reaching an agreement on the government’s debt ceiling and while the market assesses mixed messages regarding supplies from Saudi Arabia and Russia ahead of the next meeting of the OPEC + alliance on production policy.
Brent crude rose 69 cents, or 0.9%, to settle at $76.95 a barrel, and US West Texas Intermediate crude rose 84 cents, or 1.2%, to $72.67 a barrel.
On a weekly basis, the two benchmarks recorded gains for the second week in a row, amounting to 1.7% for Brent and 1.6% for WTI.
Markets remain cautious as talks to raise the debt ceiling may stretch, and there have been new concerns regarding a possible hike in interest rates by the Federal Reserve next month that would dampen demand following a strong reading of consumer spending and inflation in the United States.
An official in US President Joe Biden’s administration said that although negotiators might reach an agreement today, Friday, to raise the US government’s debt ceiling of $ 31.4 trillion, the talks might extend through the weekend.
And the US Treasury warns that if Congress does not reach an agreement, the funds available to it to cover all its obligations will run out by June 1, which will lead to a catastrophic economic slump.
The two benchmarks fell more than $2 a barrel when settling on Thursday, following Russian Deputy Prime Minister Alexander Novak played down the chances of approving a new production cut at the OPEC+ meeting in Vienna on June 4.
Three informed sources told Archyde.com that Russia tends to keep oil production volumes unchanged because Moscow is satisfied with the current price and production levels.
This contradicts the hints of Saudi Energy Minister Abdulaziz bin Salman, who said earlier that speculators should beware.
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