Oil jumped $2/barrel as the likelihood of a debt ceiling raise; bullish demand outlook
International benchmarks for crude jumped about $2/barrel on Wednesday, 17 May 2023 on optimism surrounding oil demand, and the prospect of the US reaching an agreement to raise the debt ceiling surpassed worries over the lengthy supply.
International benchmarks for crude jumped about $2/barrel on Wednesday, 17 May 2023 on optimism surrounding oil demand, and the prospect of the US reaching an agreement to raise the debt ceiling surpassed worries over the lengthy supply.
Brent crude went up $2.05 or 2.7% to settle at $76.96/barrel while West Texas Intermediate on the other hand notched up $1.97 or 2.8%, concluding at $72.83/barrel.
The US authorities are expected to reach an agreement to raise the federal government’s $31.4 trillion debt ceiling, most likely by the end of this week, which would alleviate some of the burden witnessed by most asset classes.
Adding to the bullish market development was the latest report from the International Energy Agency (IEA) foreseeing the global crude demand to outpace supply by 2 million barrels/day in the second half of 2023, with China assuming the bulk of the demand, approximately 60%.