Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil Prices Rise 2.91% after Debt Ceiling Deal

Sun 04 Jun 2023 | 07:28 AM
Taarek Refaat

Oil prices rose on Friday amid a recovery in sentiment as a result of the passage of the US debt ceiling bill, and at a time when markets assessed the possibility of OPEC + implementing a production cut to support prices in the next two days.

Brent crude futures rose by 2.91%, equivalent to $ 2.16, to $ 76.44 a barrel.

West Texas Intermediate (WTI) crude futures rose 2.27%, equivalent to $1.94, to $72 a barrel, after oil prices witnessed two consecutive days of losses.

Despite the rise in oil prices today, they are still on track to record losses this week by about 3%.

The markets received a breath after the approval of a bill in Congress suspending the US debt ceiling of $31.4 trillion, in addition to indications earlier that the US Federal Reserve may stop raising interest rates.

Market sentiment was also supported by US crude inventories data released on Thursday by the Energy Information Administration, which indicated a jump in crude imports last week.

Investors' focus shifted to a meeting to be held on Sunday of the Organization of the Petroleum Exporting Countries and its allies, including Russia, known as "OPEC +".

During the meeting, ministers from major oil-producing countries will decide on possible further production cuts to support government revenues.