Oil rose for a second straight week as investors monitored progress made on Friday in debt ceiling talks to avoid a US default.
Republican and White House negotiators were moving closer to a deal to raise the debt limit, according to people familiar with the matter. However, the agreed details are tentative and there is no final agreement.
Prices:
- WTI for July delivery rose 84 cents to settle at $72.67 a barrel in New York.
- At this level, the contract is up about 1.6% for the week.
- Brent for July settlement added 69 cents to settle at $76.95 a barrel.
Supply dynamics remain in focus, with Saudi Arabia and Russia offering conflicting statements on the potential for further cuts from OPEC and its allies. Russian Deputy Prime Minister Alexander Novak said OPEC+ was unlikely to take further action at its meeting in Vienna in June, in contrast to statements by Saudi Energy Minister Prince Abdulaziz bin Salman earlier of the week that speculators should “watch”.
Crude has still plunged nearly 10% this year amid a lackluster economic recovery in top importer China and an aggressive monetary tightening campaign by the US Federal Reserve. More rate hikes are possible in the US, with trader prices on track for another quarter-point hike over the next two meetings.
