Oil prices climbed for a second straight day on Tuesday as investors bet a seasonally higher gasoline demand and OPEC+ production cuts would lead to a tightening market, although concerns over the risk of a U.S. debt default capped gains.
Oil prices are consolidating, helped by a seasonal increase in U.S. gasoline demand starting next week, OPEC+ production cuts starting this month and U.S. plans to buy oil to replenish the Strategic Petroleum Reserve (SPR), said the president of NS Trading, a subsidiary of Nissan Securities. its bottom. But concerns over U.S. debt-ceiling talks and the possibility of further U.S. interest rate hikes capped gains.
A default on U.S. debt could trigger disruptions in financial markets and a spike in interest rates, affecting domestic and global fuel demand growth.