|
Brent crude futures rose 77 cents, or 1% to $75.05 a barrel by
0806 GMT, while U.S. West Texas Intermediate crude (WTI) was up
69 cents, or 1%, at $70.79. Both contracts were headed for their
first weekly loss in three weeks.
Markets were reassured by a bipartisan deal to suspend the limit
on the U.S. government's $31.4 billion debt ceiling, which
staved off a sovereign default that would have rocked global
financial markets.
Earlier signals of a potential pause in rate hikes by the
Federal Reserve also provided support to oil prices, not least
by weighing on the U.S. dollar, making oil cheaper for holders
of other currencies.
Investor attention is now fixed on the June 4 meeting of the
Organization of the Petroleum Exporting Countries and allies
including Russia, collectively called OPEC+.
OPEC+ in April announced a surprise cut of 1.16 million barrels
per day in April, but the gains from that move have since been
retraced and prices are below pre-cut levels.
But signals on any fresh cut have been varied, with Reuters
reporting and bank analysts indicating that further output cuts
are unlikely.
On the demand side, the U.S. Institute for Supply Management
(ISM) said its manufacturing PMI fell to 46.9 last month, the
seventh-straight month that the PMI stayed below 50, indicating
a contraction in activity.
Manufacturing data out of China painted a mixed picture.
Thursday's better-than-expected Caixin/S&P Global China
manufacturing PMI contrasted with the previous day's official
government data that reported factory activity in May had
contracted to the lowest level in five months.
(Reporting by Shadia Nasralla; Additional reporting by Andrew
Hayley; Editing by Susan Fenton)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
