Oil prices rose slightly in early Asian trading on Friday as markets weighed the potential of price-supportive OPEC+ production cut over the weekend with optimistic sentiment over U.S. monetary policy and progress in the debt ceiling deal.
By 9.50 a.m. Bangkok time, Brent crude futures gained 30 cents, or 0.40%, to $74.58 per barrel, while U.S. West Texas Intermediate (WTI) crude climbed 26 cents, or 0.37%, to $70.36 per barrel, reversing from two consecutive days of losses.
The markets were buoyed by the Federal Reserve’s signals of a possible pause in rate hikes and the House’s passage of a bill suspending the U.S. government’s debt ceiling, likely preventing a catastrophic sovereign default.
The bill is currently awaiting approval by the Senate, which Democratic Majority Leader Chuck Schumer said will remain in session until it is passed on Thursday evening U.S. time.
Traders are also looking ahead to a meeting on June 4 of the Organization of the Petroleum Exporting Countries and its allies, which include Russia, to discuss whether to further cut output to bolster government income.