The prices of Petroleum they sank this Tuesday, May 30, and touches lows of more than three weeks due to concern about the agreement on the US debt ceiling that cooled the appetite for the risk assets in the market and mixed messages from big producers clouded supply prospects ahead of their meeting this weekend.
crude oil futures Brent fell $3.05or 4%, $74.02 per barrel. Meanwhile, US West Texas Intermediate crude (WTI) lost $3.13 or 4.3%, $69.74 a barrel.
The deadline to raise the debt ceiling almost coincides with the June 4 meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russiaa group known as OPEC+, and uncertainty about whether they will increase their production cuts amid a recent price decline is also weighing on the market.
Saudi Energy Minister Abdulaziz bin Salmanwarned short-term sellers who were betting on falling oil prices to “be careful” last week, in a possible sign that the OPEC+ could cut production.
However, comments from Russian oil officials and sources, including Deputy Prime Minister alexander novakindicate that the world’s third largest oil producer is leaning towards keep production unchanged.
In April, Saudi Arabia and other OPEC+ members announced further oil production cuts of about 1.2 million barrels per day (bpd), bringing the total volume of OPEC+ cuts to 3.66 million barrels per day (bpd). bpd, according to calculations by Reuters.
Republicans said they may oppose raising the US debt ceiling
After the President of the United States Joe Biden and the head of the House of Representatives kevin mccarthy affirm that they reached a preliminary agreement to raise the US debt ceiling, this Monday during the holiday in that country, some legislators far-right republicans they said they might oppose a deal.
Biden and McCarthy closed a deal over the weekend and Must be approved by Congress divided american before June 5day on which Treasury Department says the country will not be able to meet its financial obligations, which could disrupt financial markets.
The House Rules Committee is scheduled to consider the 99-page bill on Tuesday, ahead of votes in the Republican-controlled House of Representatives and the Democratic-controlled Senate.
Source: Ambito
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