Oil prices rise as traders watch U.S. debt ceiling talks-Xinhua

Oil prices rise as traders watch U.S. debt ceiling talks

Source: Xinhua| 2023-05-23 04:21:15|Editor:

NEW YORK, May 22 (Xinhua) -- Crude oil futures prices saw slight increase on Monday as the market waited for news on debt ceiling negotiations in the United States.

The West Texas Intermediate (WTI) for June delivery increased by 0.44 U.S. dollars, or 0.61 percent, to settle at 71.99 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery gained 0.41 dollars, or 0.54 percent, to settle at 75.99 dollars a barrel on the London ICE Futures Exchange.

U.S. President Joe Biden and House Speaker Kevin McCarthy are scheduled to hold a face-to-face meeting Monday, in efforts to avert a government default on its debt obligations as early as June 1.

WTI oil rebounded from session lows as traders bet that resumption of debt ceiling negotiations will provide support to riskier assets, said Vladimir Zernov, analyst with market information supplier FX Empire.

It might be hard for oil to make a major move if debt ceiling talks remain ongoing and before the traders get flash readings of purchasing managers' index for the United States and Europe on Tuesday, according to Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.

The WTI futures for June delivery expire on Monday and traders have shifted to the WTI futures for July delivery.