Oil prices varied, on Monday, in a volatile session, as trading witnessed an exchange between green and red colors more than once, with analysts diverging between concerns about increasing interest rates that may limit demand for oil, and optimism about the initial US debt ceiling agreement, which will lead to Avoid default in the world’s largest oil-consuming economy.
US President Joe Biden said, Sunday, that he had finalized a budget agreement with House Speaker Kevin McCarthy, which includes suspending the debt ceiling of $ 31.4 trillion until January 1, 2025, and added that the agreement is ready to be presented to Congress for a vote on it.
The two leaders also expressed confidence that members of the Democratic and Republican parties would vote in support of the deal.
On the other hand, Friday’s data revealed that consumer spending in the United States increased more than expected in April and that inflation accelerated.
This report strengthened the chances of raising US interest rates by 25 basis points in June to 61.9 percent on the CME FedWatch index, and to remain at this level for the rest of the year.
“The rise in interest rates in the United States represents a headwind to demand for crude oil,” said Tony Sycamore, an analyst at IG.
It is scheduled to meet the Organization of the Petroleum Exporting Countries “OPEC” and its allies, including Russia, on the fourth of June.
price movements
Brent crude futures rose 0.13 cents, or 0.19 percent, to $77.11 a barrel by 17:00 GMT, and Nymex crude rose 0.30 cents, or 0.41 percent, to $72.98 a barrel.
2023-05-29 17:11:03
#Oil #prices #fluctuated #quiet #trading #due #holidays #markets
