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Oil slips as economic jitters offset U.S. debt deal
Oil slips as economic jitters offset U.S. debt deal
Oil prices dipped due to economic worries, despite a debt ceiling deal being reached in the US that averted an economic default and helped support higher demand. U.S. President Joe Biden and House Speaker Kevin McCarthy had agreed to suspend the $31.4tn debt ceiling and cap government spending for the next two years. However, markets remain wary of a potential rise in interest rates by the U.S. Federal Reserve, which would be a "headwind for crude oil demand," said analyst Tony Sycamore. OPEC+ is due to meet on 4 June; Saudi Arabia and Russia appear to be divided on whether to cut production output.
Oil prices dipped due to economic worries, despite a debt ceiling deal being reached in the US that averted an economic default and helped support higher demand. U.S. President Joe Biden and House Speaker Kevin McCarthy had agreed to suspend the $31.4tn debt ceiling and cap government spending for the next two years. However, markets remain wary of a potential rise in interest rates by the U.S. Federal Reserve, which would be a "headwind for crude oil demand," said analyst Tony Sycamore. OPEC+ is due to meet on 4 June; Saudi Arabia and Russia appear to be divided on whether to cut production output.
Oil prices dipped due to economic worries, despite a debt ceiling deal being reached in the US that averted an economic default and helped support higher demand. U.S. President Joe Biden and House Speaker Kevin McCarthy had agreed to suspend the $31.4tn debt ceiling and cap government spending for the next two years. However, markets remain wary of a potential rise in interest rates by the U.S. Federal Reserve, which would be a "headwind for crude oil demand," said analyst Tony Sycamore. OPEC+ is due to meet on 4 June; Saudi Arabia and Russia appear to be divided on whether to cut production output. 
