Oil prices dive on uncertainty over OPEC+ meeting, U.S. debt ceiling deal

  • World
  • Wednesday, 31 May 2023

NEW YORK, May 30 (Xinhua) -- Crude oil futures prices tanked on Tuesday amid uncertainties over the upcoming meeting of the Organization of the Petroleum Exporting Countries and its partners (OPEC+), as well as the fate of the U.S. debt ceiling deal in Congress.

The West Texas Intermediate (WTI) for July delivery shed 3.21 U.S. dollars, or 4.42 percent, to settle at 69.46 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery lost 3.41 dollars, or 4.43 percent, to settle at 73.54 dollars a barrel on the London ICE Futures Exchange.

Though the White House and House Republicans have reached a deal on the U.S. debt ceiling, some lawmakers' opposition to it adds uncertainty to the outcome.

"The excitement over the debt ceiling deal in principle is wearing off for the oil trade as there are some doubts that it will get the votes it needs," said Phil Flynn, senior analyst at The Price Futures Group.

Moreover, investors have no clue on what would happen at the upcoming OPEC+ meeting on Jun. 4 due to conflicting signals from major players.

WTI oil and Brent oil are under strong pressure as traders bet that OPEC+ will not provide additional support to oil markets at its upcoming meeting, noted Vladimir Zernov, analyst with market information supplier FX Empire.

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