Oil prices continue to decline Tuesday afternoon on concerns over the U.S. government debt ceiling.
Brent crude futures for July on London’s ICE Futures exchange stood at $76 a barrel by 1:44 p.m. Tuesday, down $1.07 (1.39%) from the previous session’s close.
The price of WTI crude futures for July on the electronic trading of the New York Mercantile Exchange (NYMEX) was down by that time by $0.84 (1.16%), to $71.83 a barrel.
On Wednesday, the U.S. House of Representatives will vote on the debt ceiling agreement before it goes to the Senate.
Active opponents of the agreement in both houses of parliament could slow its passage, The Wall Street Journal noted. Some conservative lawmakers have already said they would not support the deal because it does not sufficiently limit budget spending, while progressive Democrats believe the spending cuts are excessive.
“This uncertainty is keeping oil prices up,” said Hargreaves Lansdown analyst Suzanne Streeter, whose words are cited by Barron’s.
In addition, traders expect another OPEC meeting on Sunday.
The organization will not take any further steps until it sees the effect of lower production quotas, according to ANZ.
