Crude oil futures prices declined on Friday due to the pause of debt ceiling negotiations in the United States.
The West Texas Intermediate (WTI) for June delivery decreased by 0.31 U.S. dollars, or 0.43 percent, to settle at 71.55 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery fell 0.28 dollars, or 0.37 percent, to settle at 75.58 dollars a barrel on the London ICE Futures Exchange.
It’s reported that debt ceiling talks between the White House and Republican legislative members were paused on Friday, which dampened market sentiment.
The United States could default on its debt obligations as early as June 1, according to U.S. Treasury Secretary Janet Yellen.
“Crude prices were having a great week as the U.S. economic outlook dramatically improved as lawmakers seem likely to reach a deal on the debt ceiling. Debt ceiling optimism quickly disappeared on Friday and that sent oil prices sharply lower,” said Edward Moya, senior market analyst at OANDA, a supplier of online multi-asset trading services.
Moya expected that WTI oil prices might be stuck in a range around the level slightly higher than 70 dollars per barrel until “we see further evidence that a debt deal will be reached and that supercore inflation doesn’t heat up.”
The number of active U.S. active oil drilling rigs decreased by 11 to 575 this week, according to data issued by oil service provider Baker Hughes on Friday.
