Oil prices fell on Thursday as economic data raised concerns about oil demand in the world’s largest oil consumer, the US.
International benchmark Brent crude traded at $76.69 per barrel at 09.54 a.m. local time (0654 GMT), a 0.35% decrease from the closing price of $76.96 a barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $72.56 per barrel, down 0.37% from the previous session’s close of $72.83 per barrel.
The Energy Information Administration (EIA) data released late Wednesday showed a jump of 5 million barrels in crude oil inventories, raising concerns about demand and driving down prices.
Talks on raising the US debt ceiling have also put pressure on prices.
Negotiations between US President Joe Biden and Republican leaders continue over raising the debt ceiling.
Biden said Wednesday that he is ‘confident’ his team and congressional leaders will strike a deal to ensure the country does not default on its national debt.
The US is facing a June 1 deadline to raise the debt ceiling—the amount the country is legally allowed to borrow—or face a default that would send shockwaves through the global economy.
If no deal is agreed upon, the US could default on its $31 trillion debt on June 1, sparking fears of a recession with severe implications worldwide.
Biden intends to hold a news conference on the negotiations on Sunday.
