Oil prices increased on Tuesday amid expectations that the debt ceiling agreement in the United States will boost crude demand. West Texas Intermediate crude rose to $73.20 per barrel, up 0.7% from Friday's close.
While the debt ceiling agreement has encouraged the purchase of high-risk assets like commodities, major oil producers are set to meet on June 4 without clarity on whether they will increase production cuts amid the overall decline in prices. U.S. interest rates are also expected to rise further, which could hinder economic growth and, consequently, oil demand.
Investors are closely monitoring whether the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, will change their production quotas.
