WTI crude futures reversed early gains to trade little changed below $73 per barrel on Monday, as investors welcomed a tentative deal on the US debt ceiling. However, concerns lingered regarding the impact on demand due to a sluggish economic recovery in China and the prospect of higher interest rates, particularly in the US. Trading activity is expected to be limited as markets are closed in the US, UK, and other European countries.
Investors are also preparing for an upcoming OPEC+ meeting later this week, following a warning from Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, to “watch out” for potential consequences for short sellers. Meanwhile, Russian Deputy Prime Minister Alexander Novak stated that he anticipated no new measures from OPEC+ as the group recently implemented production cuts this month. Last week, oil prices gained nearly 1.4%.
