Oil prices rebound on optimism over U.S. debt ceiling deal

  • World
  • Friday, 02 Jun 2023

NEW YORK, June 1 (Xinhua) -- Crude oil futures prices saw a solid rebound on Thursday amid optimism over U.S. debt ceiling deal.

The West Texas Intermediate (WTI) for July delivery rose 2.01 U.S. dollars, or 2.95 percent, to settle at 70.10 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery gained 1.68 U.S. dollars, or 2.31 percent, to settle at 74.28 U.S. dollars a barrel on the London ICE Futures Exchange.

U.S. House of Representatives' nod of a bill to suspend U.S. government debt ceiling until Jan. 1, 2025 on Wednesday evening lifted investors' risk appetite broadly.

"Optimism on the debt deal seems to allow the oil market to try to make a stand even though it still looks vulnerable to one more wash out," said Phil Flynn, senior analyst at The PRICE Futures Group.

Those hopes for the United States avoiding debt default "helped the market ignore a big snapback in U.S. crude supplies," noted Flynn.

U.S. commercial crude oil stocks increased by 4.5 million barrels week on week in the week ending May 26 in contrast with market expectation of a dip, according to data issued by the U.S. Energy Information Administration on Thursday.

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