Oil prices rise as US Congress passed debt ceiling bill

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

According to “Reuters”, Brent crude futures rose 71 cents, or 0.96 percent, to $ 74.99 a barrel, by 0600 GMT, and West Texas Intermediate crude futures rose 66 cents, or 0.94 percent, to $ 70.76 a barrel. Oil prices, two consecutive days of losses…

The markets received reassurance after the approval of a bill in Congress suspending the US debt ceiling of $ 31.4 trillion, in addition to indications earlier that the Federal Reserve (the US central bank) might stop raising interest rates.

On Thursday evening local time, the US Senate passed the debt ceiling bill, averting a catastrophic debt default that would have jolted the financial markets.

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

Investors’ focus has shifted to a meeting 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 the major oil-producing countries will decide on further possible 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, stated that it is unlikely that further production cuts will be implemented from OPEC +, and that the alliance will adopt a wait-and-see approach.

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.