Oil steadies as U.S. debt optimism offsets rising crude stockpiles
BNN Bloomberg
Oil steadied after jumping almost three per cent on Wednesday as optimism the U.S. would resolve its debt-ceiling impasse triggered broad gains in financial markets, offsetting a largely bearish U.S. stockpile report.
West Texas Intermediate futures traded below US$73 a barrel after the biggest daily advance in almost two weeks. President Joe Biden expressed confidence that negotiators would reach an agreement to avoid a catastrophic default, while House Speaker Kevin McCarthy remained hopeful of a deal.
Oil is still lower for the year as monetary tightening in the U.S. and China’s lackluster economic growth weigh on the demand outlook, while supply has remained robust. Refiners in South Korea and Taiwan recently snapped up millions of barrels of U.S. crude, adding some bullish optimism.
