Oil falls on US debt deal struggles, OPEC+ talks uncertainty

Oil fell on Tuesday, giving up earlier gains, as concerns about the viability of the U.S. debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers have clouded the supply outlook ahead of their meeting this weekend.

Brent crude futures fell 50 cents, or 0.7%, to $76.57 a barrel by 0453 GMT after rising by 0.5% earlier on Tuesday.

U.S. West Texas Intermediate (WTI) crude dipped 35 cents to $72.32 a barrel, down 0.5% from Friday’s close. There was no settlement on Monday because of a U.S. public holiday.

Some hard-right Republican lawmakers said on Monday they might oppose a deal that would raise the debt ceiling in the U.S., the world’s biggest oil user, while Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy remained optimistic the deal will pass.

Biden and McCarthy forged an agreement on the debt over the weekend and it must pass a divided U.S. Congress before June 5, the day the Treasury Department say the country will not be able to meet its financial obligations, which could disrupt financial markets.

This report’s information was first seen on REUTERS; to read more, click this link.