Oil Prices fall against the background of a Deal being reached on the US Debt Ceiling

Oil prices fell nearly 1 percent in early European trade, erasing yesterday's gains on concerns about the viability of the bipartisan US debt ceiling deal and mixed messages from top oil producers ahead of the OPEC+ meeting later in the week.

By 09:00 a.m. Bulgarian time, Brent oil futures and US light crude WTI futures were down about 1% at .30 and .30 a barrel, respectively, erasing Monday's gains in reaction to the weekend pact between Democrats and Republicans in the US Congress on the federal debt ceiling.

Brent Oil Chart (in dollars per barrel)

But some far-right Republican lawmakers said last night they may oppose a debt ceiling deal for the world's biggest oil consumer (the United States), while Democratic President Joe Biden and Republican House Speaker Kevin McCarthy remained upbeat that the deal will be voted on in Congress.

Over the weekend, Biden and McCarthy struck a deal on the debt, and it must win the approval of the US Congress before June 5, the day the Treasury Department indicated that the country will no longer be able to meet its financial obligations, which could provoke tremors in the world financial markets.

Conflicting statements from Republicans and lawmakers are causing concern among investors, analysts said.

It should be noted that the deadline for approval of the debt ceiling agreement (June 5th) almost coincides with the June 4th meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as the OPEC+ format and the associated uncertainty as to whether or not they will commit to further production increases amid the recent decline in oil prices.

Last week, the Minister of Energy of Saudi Arabia, Abdulaziz bin Salman...