Oil markets were little changed and traders avoided decisive action as US lawmakers prepared for final negotiations on the debt ceiling.
President Joe Biden and House Speaker Kevin McCarthy will meet at 5:30 a.m. local time on Monday for talks to avoid a catastrophic U.S. default. The most actively traded July West Texas Intermediate contract was little changed near $72.
The “debt drama in Washington” will continue to be a key driver of oil price action as policymakers face a tough June 1 deadline, analysts at the fuel distributor wrote in wholesaler TACenergy in a note to customers.
The global benchmark crude oil index fell about 5% in May, heading for a fifth consecutive monthly loss in what would be the worst run since 2017. Although leading forecasters such as the Agency International Energy expect the market to fall into a strong deficit, economic concerns in the US and China have made some money managers the most bearish in a decade.
Prices have also been hit by the fact that Russia’s oil exports remain strong despite a promise to curb production in retaliation for Western sanctions. The country’s refineries processed less crude this month due to seasonal maintenance, but the drop in supplies to facilities was too small to provide concrete evidence that Moscow has fully implemented its production cuts.
Prices:
- WTI for June delivery, which expires on Monday, rose 44 cents to settle at $71.99 a barrel in New York
- The most active July contract was $72.05
- Brent for July settlement rose 41 cents to $75.99 a barrel.
-With the help of Sri Taylor.
