Oil prices were steady on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world's largest economy and oil consumer, but concerns about further interest rate hikes capped gains.
Brent crude futures climbed 14 cents, or 0.2%, to $77.09 a barrel by 09:05 GMT, while WTI crude was at $72.88 a barrel, up 21 cents, or 0.3%.
U.S. President Joe Biden and House Speaker Kevin McCarthy over the weekend forged an agreement to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years. Both expressed confidence that members of the Democratic and Republican parties will vote to support the deal.
Reaching the agreement and coming closer to avoiding a default on U.S. debt renewed investor appetite for riskier assets such as commodities.
Analysts said the provisional deal has taken pressure off the markets, offering a relief rally in risk assets, including crude oil, but they also see any boost in oil prices from the debt deal as short-lived. Meanwhile, OPEC+, is due to meet on June 4.
