Oil prices retreated on Tuesday on concerns the U.S. debt ceiling fight may not yet be over.
Brent crude,
the international benchmark, fell 1.4% to $76.01 in early trading.
West Texas Intermediate,
the U.S. standard, declined 1.2% to $71.82. Both contracts are down about 10% this year.
Prices had initially gained on optimism that the deal reached between President Joe Biden and House Speaker Kevin McCarthy would end the prospect of U.S. default. However, opposition to the agreement has emerged from Republicans who say spending cuts don’t go far enough and Democrats who say they are too severe.
“The uncertainty has kept a lid on oil prices,” said Susannah Streeter, head of money and markets at
Hargreaves Lansdown.
The next meeting of the Organization of the Petroleum Exporting Countries is due June 4. OPEC has recently cut output quotas to stop oil prices from falling too far.
Write to Brian Swint at [email protected]
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