Oil steady as U.S. default risk offsets demand outlook

Oil prices remained stable on Monday as concerns over the US debt ceiling weighed on optimism about demand later in the year, offsetting support from reduced supply from Canada and OPEC+ producers.

Brent crude futures were up 17 cents, or 0.2%, to $75.75 a barrel by 1111 GMT, while WTI crude for July delivery, the more commonly traded contract, was up 15 cents, or 0.2%, to $71.84.

The June WTI contract, which expires later today, gained 7 cents to $71.62 a barrel.

Talks to avoid a U.S. debt default were expected to begin in Washington on Monday, as the spectre of a default and the ensuing economic slowdown and cooling of gasoline consumption continued to frighten markets.

Both oil benchmarks climbed roughly 2% last week, their first weekly rise in five weeks, after wildfires in Alberta, Canada, cut off substantial volumes of petroleum supplies.

The influence of the Organisation of Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, is also being felt after they went into force this month.

Total crude and oil product exports from the group fell by 1.7 million barrels per day (bpd) on May 16, according to JP Morgan, and Russian oil shipments are expected to decrease further by late May.