Oil rises with the US Congress passing the debt ceiling bill

Oil prices rose on Friday amid a recovery in sentiment as a result of the passage of the US debt ceiling bill and at a time when markets assessed the possibility of OPEC + implementing a production cut to support prices in the next two days.

Brent crude futures rose 71 cents, or 0.96 percent, to $74.99 a barrel by 0600 GMT, and West Texas Intermediate crude futures rose 66 cents, or 0.94 percent, to $70.76 a barrel, after oil prices witnessed two consecutive days of losses.

Markets received reassurance after the passage of a bill in Congress suspending the US debt ceiling of $ 31.4 trillion, in addition to indications earlier that the Federal Reserve may stop raising interest rates.

On Thursday evening local time, the US Senate passed the debt ceiling bill, averting a catastrophic debt default that would have jolted the financial markets.

Market sentiment was also supported by Thursday’s US crude inventories data from the Energy Information Administration, which pointed to a jump in crude imports last week.

Investors’ focus has shifted to a June 4 meeting of the Organization of the Petroleum Exporting Countries and its allies, including Russia, an alliance known as OPEC+.

During the meeting, ministers from major oil-producing countries will decide on possible further production cuts to support government revenues.

Expectations and indicators varied regarding such a possible cut, as Reuters and analysts from banks including HSBC and Goldman Sachs said that it is unlikely that further production cuts will be implemented from OPEC +, and that the alliance will adopt a wait-and-see approach.

However, other market observers indicated that weak data for the manufacturing sector from China and the United States may suggest that OPEC + will take a decision to cut further.