Oil prices rally for second day after debt-ceiling bill

Oil prices have rallied for the second day on Friday as global markets breathe a sigh of relief after the US Senate votes through the debt-ceiling extension bill, vaulting the final hurdle prior to implementation. The possibility of OPEC+ announcing more production cuts at its June 4 meeting further supports Oil.

The breakeven price for the Saudis is $80 a barrel despite Russia downplaying the need for cuts. Nonfarm payrolls beats estimates but the initial boost to the US Dollar reverses on higher-than expected unemployment and a wage disinflation.

WTI crude is trading at $71.72 per barrel, up by 2.26% on the day, and Brent is trading at $76. At the time of writing.

The Saudis are likely to continue to apply pressure for OPEC+ to cut production given analysts estimate its breakeven level is $80 per barrel, which is still above the current low-price levels.