Friday, October 27, 2023

Oil prices rise as US debt default risk diminishes


According to Reuters, oil prices bounced back on Friday after a drop of over 1% the previous day. Brent futures rose by 0.8% to $76.45 a barrel, while US West Texas Intermediate crude climbed by 0.7% to $72.34. Analysts suggest that the market is pricing out the risks of a US debt default, leading to a more risk-on environment and some dip-buying in Brent crude from previous oversold conditions. However, sentiment remains mixed as investors balance optimism over the avoidance of a US debt default with inflation data that could lead to more interest rate hikes from global central banks.

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