Oil prices are rising as the risk of America defaulting on its debts recedes

Oil prices rose on Friday, after falling more than 1 percent the day before, as investors cautiously optimized about the fading risk of a US debt default.

Brent crude futures rose 73 cents, or 1 percent, to $76.59 a barrel by 0650 GMT, and US West Texas Intermediate crude rose 62 cents, or 0.9 percent, to $72.48.

“I think the markets are discounting the risk of a US debt default, which translates into an increase in investors’ appetite for risk,” said Ip Yunrong, a market expert at IG.

US President Joe Biden and House Speaker Kevin McCarthy this week renewed their intention to reach an agreement soon to raise the federal debt ceiling of $ 31.4 trillion, and agreed to hold talks by Sunday.

Sentiment remains mixed as investors balance optimism that the United States will avoid a debt default crisis with inflation data that may warn that the world’s central banks will raise interest rates.

It also appears that inflation in the United States is not declining fast enough to allow the Federal Reserve to halt its moves to raise interest rates, according to two federal policymakers.