Oil prices plunged 4% on renewed concerns about US debt ceiling deal
International benchmarks for crude oil dipped more than 4% on Tuesday, 30 May 2023 on the renewed concerns over the agreement to lift the debt ceiling in the US after several lawmakers said they might vote the oppose the deal.
International benchmarks for crude oil dipped more than 4% on Tuesday, 30 May 2023 on the renewed concerns over the agreement to lift the debt ceiling in the US after several lawmakers said they might vote the oppose the deal. The country will not be able to meet its financial obligations if Congress does not pass the bill by 5 June 2023, which would disrupt the financial market.
Also playing a part in the latest price rout is the uncertainties surrounding the news of an extended production cut. The first week of June is quickly proving to be an eventful one that could shape demand for the second half of the year, with both the debt ceiling talks and the OPEC+ meeting scheduled a day apart from one another.
Brent crude futures went down $3.53 or 4.6% at $73.54/barrel.
West Texas Intermediate dropped $3.21 or 4.4% to settle at $69.46/barrel.