Crude oil prices pared early losses and settled higher on Monday, amid hopes the U.S. lawmakers will reach a debt ceiling deal soon and help the nation avoid a default.
West Texas Intermediate crude oil futures for June settled at $71.99 a barrel, up $0.44 or about 0.6%, on the expiration day.
Brent crude futures gained $0.41 or about 0.5% to $75.99 a barrel today.
Edward Moya, Senior Market Analyst at OANDA says, "It might be hard for oil to make a major move if debt ceiling talks remain ongoing and before we get Tuesday's flash PMI readings for the US and Europe. Oil is wavering and that should continue as long traders await a major update with the current macro backdrop."
House Speaker Kevin McCarthy has expressed hope that the Republicans and the Democrats will move to the center from their entrenched positions to raise the $31.4 trillion debt ceiling.
"Our teams are talking today and we're setting (sic) to have a meeting tomorrow," McCarthy said, according to a Reuters report. "That's better than it was earlier. So, yes."
