Oil Down 1% As Market Awaits Result Of U.S. Debt Talks

Oil prices slipped on Monday as caution around US debt ceiling talks and concerns about demand recovery in China offset support from lower supplies from Canada and OPEC+ producers, Florence Tan and Mohi Narayan reported for Reuters.

Photo Insert: Brent crude futures fell 73 cents, or 0.97%, to $74.85 a barrel by 0634 GMT.

Brent crude futures fell 73 cents, or 0.97%, to $74.85 a barrel by 0634 GMT, while US West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, slipped 73 cents, or 1.02%, to $70.96.

The June WTI contract, which expires later on Monday, fell 87 cents to $70.68 a barrel.

"I expect plenty of volatility in the coming days and a bounce upward in crude prices as and when a deal is reached to raise the debt ceiling," said Vandana Hari, founder of oil market analysis provider Vanda Insights.

"But crude's headroom thereafter will be limited as other economic headwinds return to the center stage," she added.

Analysts said that weak economic data reports from China in recent weeks have sparked concerns about demand in the world's top crude importer and No. 2 oil consumer.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic