Oil market dipped as talks to raise debt ceiling in the US halted
International benchmarks for crude oil fell on Friday, 19 May 2023 after talks to raise the debt ceiling in the US were suspended, triggering fears that the country could fall into default by 1 June
International benchmarks for crude oil fell on Friday, 19 May 2023 after talks to raise the debt ceiling in the US were suspended, triggering fears that the country could fall into default by 1 June, which would be detrimental to the economy, consequently affecting oil demand.
Brent crude went down 28 cents or 0.8% to close at $75.58/barrel while West Texas Intermediate dropped 31 cents or 0.4% to conclude at $71.55/barrel. WTI contracts for July dipped 25 cents or 0.3% to $71.69.
Oil prices suspended their upward momentum after the Republicans in the US House of Representatives and President Joe Biden’s administration paused negotiations on Friday to raise the $31.4 trillion government debt ceiling. “The longer it takes to finalize a deal, the higher the likelihood of another 0.25% interest rate increase concurring in June”, said Mizuho analyst Robert Yawger.