The oil market is on the rise again

On Tuesday, oil quotes remain in the area of local highs above $76 per barrel. Market participants continue to analyze the situation around the negotiations on the issue of increasing the US government debt limit.

President Joe Biden met with Republican House Speaker Kevin McCarthy yesterday. According to both sides, the talks were quite productive, but no agreement has yet been reached. The deadline for raising the debt ceiling may come in the near future: Treasury Secretary Janet Yellen said that the department's funds could run out by early June.

Analysts note that the uncertainty in this matter has a negative impact on the mood of oil traders. And if the US Treasury in the near future will be left without funds and will not be able to fulfill its obligations, this could provoke a crisis, the scale of which is unpredictable.

The current Brent oil quote is $76.25 per barrel. North American oil WTI is trading near the level of $72.00.

In general, since the beginning of the year, oil prices have fallen by about 10% against the backdrop of a slower recovery of the Chinese economy after the lifting of quarantine restrictions. In addition, the factors constraining the growth of the oil market include the ongoing tightening of the monetary policy of the US Federal Reserve, as well as the continued high volumes of Russian oil exports.