Last Update: May 19, 2023, 23:46 IST
The less active US crude contract for May, which expires on Monday, declined 20 cents, or 0.3%, to $71.77. (Image: Reuters file)
Brent futures fell 9 cents, or 0.1%, to $75.77 a barrel by 11:55 ET (3:55 GMT), while West Texas Intermediate US crude for July expiration was down 22 cents
Oil prices fell on Friday after reports that debt ceiling talks between the White House and House Republicans were stalled raised concerns of a possible default in markets that could dent demand.
Brent futures fell 9 cents, or 0.1%, to $75.77 a barrel by 11:55 a.m. ET (3:55 GMT), while West Texas Intermediate US crude for July expiration fell 22 cents, or 0.3%, to $71.74.
The less active US crude contract for May, which expires on Monday, declined 20 cents, or 0.3%, to $71.77.
Markets were also rattled by comments from Federal Reserve Chairman Jerome Powell that inflation was “far above” the Fed’s objective.
“It doesn’t look like they’re going to do a debt deal today… the bulls don’t have much to hang their hats on,” said Mizuho analyst Robert Yoger.
Earlier this week, US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reiterated their aim to strike a deal to raise the $31.4 trillion federal debt limit, agreeing to talk as soon as Sunday.
Providing some support for markets, US Treasury Secretary Janet Yellen reaffirmed the strength and soundness of the country’s banking system in a meeting with bank CEOs on Thursday, the Treasury Department said in a statement.
Analysts at National Australia Bank said the prospect of additional rate hikes added to concerns about weakness in demand in the United States.
Analysts said, however, that prices could rise as they expect demand from China to continue rising through 2023, offsetting the OECD demand slowdown.
China’s oil refinery throughput in April rose 18.9% from a year earlier to the second highest level on record, data showed earlier this week.
Chinese refiners kept running higher to meet domestic fuel demand and build reserves ahead of the summer travel season.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – reuters,
