Oil rises on US officials' debt ceiling deal

Oil rose after President Joe Biden and House Speaker Kevin McCarthy reached a tentative deal on the U.S. debt ceiling over the weekend, averting a potential default. U.S. crude rose above $73 a barrel after closing 1.2 percent higher on Friday. Biden and McCarthy expressed confidence that their deal would pass Congress and reach the president’s desk for signature. Liquidity is expected to be weak on Monday because of national holidays in the U.S. and Britain. Oil is still down about 9 percent this year as China’s lackluster economic recovery and aggressive monetary tightening by the Federal Reserve weigh on the demand outlook. Domestic crude processing has fallen, while Russian supplies have been resilient even after the country announced it would cut production. Supply dynamics remain in focus, with Saudi Arabia and Russia recently making conflicting statements about the potential for changes to supply policy from OPEC+. The group meets in Vienna on June 3-4 to decide on production levels. Oil is "hoping that progress on the U.S. debt ceiling will ease any imminent threat of a supply cut response from OPEC+," said Vishnu Varathan, Singapore-based head of Asia economics and strategy at Mizuho Bank Ltd.