However, despite these declines, Brent Crude and US NYMEX Crude are heading to post their first weekly gains in a month.
There’s not much time left for Biden and House Republicans to agree on a deal to raise the federal government’s borrowing limit by $31.4 trillion, or risk a catastrophic default.
The US Treasury Department has warned that the government may not be able to pay all of its bills by June 1.
But a White House official said a deal was still possible.
On the other hand, the markets were worried, due to statements by Federal Reserve Chairman Jerome Powell, who said that the bank will not need to raise interest rates to the high levels it was previously targeting. to achieve in order to fight against inflation.
Mizuho analyst Robert Yager said: “It doesn’t look like they’ll get the debt deal today. The odds of a 25 basis point rate hike at the meeting of June are increasing day by day. There is not much time to reach an agreement.”
After reports of stalled debt ceiling talks and Powell’s comments, US stocks, Treasury yields and the dollar fell.
The US Treasury said in a statement it had provided some support to the markets, and US Treasury Secretary Janet Yellen reaffirmed the strength and soundness of the country’s banking system during a meeting with bank CEOs, THURSDAY.
Analysts at National Australia Bank said the possibility of an interest rate hike heightened concerns about weak demand in the United States.
Analysts said prices could rise as they expect Chinese demand to continue rising through 2023, which should offset a slowdown in demand from the OECD.
Data this week showed productivity at China’s oil refineries in April rose 18.9% from a year earlier, to the second-highest level on record.
Chinese refiners maintained high levels to meet domestic fuel demand and build inventories ahead of the summer travel season.
price movements
Brent crude futures fell 9 cents, or 0.12%, to $75.83 a barrel at 1700 GMT, and U.S. Nymex crude fell 10 cents, or 0.20%, to 71 $.70 a barrel.
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