Oil prices broadly stable as all eyes on US debt talks

After rising the previous day on optimism about US gasoline consumption, oil prices remained essentially flat on Thursday as traders waited for indications of progress in discussions to lift the US debt ceiling.

As of 1142 GMT, Brent oil futures were down 13 cents, or 0.2%, to $76.83 a barrel. West Texas Intermediate crude in the United States fell 12 cents, or 0.2%, to $72.71 a barrel.

A significant drop in US petrol stockpiles as demand surged to the highest levels since 2021, along with confidence around US debt ceiling talks, helped the main crude benchmarks close more than $2 higher on Wednesday.

On Thursday, European markets rose and the US dollar reached a fresh seven-week high, making oil more costly for holders of foreign currencies.

President Joe Biden and senior Republican in Congress Kevin McCarthy reaffirmed their desire on Wednesday to strike an agreement to raise the federal government’s $31.4 trillion debt ceiling and avert an economically disastrous default.

Before the government runs out of money to pay its debts, which may happen as soon as June 1, a debt solution must be agreed and enacted by both chambers of Congress.

The increasing prospect of another interest rate hike by the US Federal Reserve weighed on pricing as well.