Oil prices fell over 2 percent on Tuesday, with doubts about China's economic recovery and uncertainty on whether the Congress will approve the debt deal weighing on prices.
Benchmark Brent crude futures fell 2.2 percent to $75.42 a barrel, while WTI crude futures were down 2.1 percent at $71.13.
After April economic readings came in below estimates, investors remain concerned that China's post-Covid recovery is faltering.
Also, a new coronavirus variant spreading in China is expected to infect nearly 65 million every week by the end of June.
Meanwhile, concerns about the U.S. debt ceiling pact grew after a handful of Republican lawmakers said they would oppose the deal to raise the United States' $31.4 trillion debt ceiling.
Later today, the House Rules Committee is scheduled to consider the package and vote on sending it to the full House for a vote expected Wednesday.
U.S. President Joe Biden and House Speaker Kevin McCarthy expressed confidence on Monday that the debt-ceiling deal will pass Congress.
The odds of a U.S. default currently remain low, but the consequences could be dire. Incidentally, the debt deadline nearly coincides with the OPEC+ policy meeting on June 4, and there is much uncertainty over whether the member countries will increase their output cuts.
