<p>Oil prices continued to climb on Tuesday with investors expecting a tighter market led by a seasonal rise in gasoline demand and supply cuts from OPEC+ producers, though concerns over the risk of a US debt default capped gains.</p>.<p>Brent crude futures rose 28 cents, or 0.37 per cent, to $76.27 a barrel by 0320 GMT while US West Texas Intermediate (WTI) crude was at $72.36 a barrel, up 31 cents, or 0.43 per cent.</p>.<p>It was the second day of gains after Brent rose 0.5 per cent on Monday. WTI gained 0.6 per cent, amid a 2.8 per cent increase in US gasoline futures ahead of the Memorial Day holiday on May 29 that traditionally marks the start of the peak summer fuel demand season.</p>.<p>"Oil prices are consolidating their bottoms, helped by a seasonal increase in US gasoline demand from next week, production cuts by OPEC+ from this month and planned US purchases to refill the Strategic Petroleum Reserve (SPR)," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/fuel-starved-sri-lanka-enters-fuel-deal-with-china-s-sinopec-1221035.html" target="_blank">Fuel-starved Sri Lanka enters fuel deal with China’s Sinopec</a></strong></p>.<p>Last week, the US Department of Energy said it would buy 3 million barrels of crude oil to replenish the SPR for delivery in August.</p>.<p>Voluntary production cuts by the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, that went into effect this month are also expected to keep oil markets tight.</p>.<p>Goldman Sachs analysts said in a report on Monday that they "expect sustained (oil supply) deficits from June as OPEC+ production cuts fully realize and demand rises further."</p>.<p>Asia will lead much of that oil demand growth, adding about around 2 million barrels per day (bpd) of consumption in the second half of the year, a Vitol executive said on Monday.</p>.<p>Still, investors are also focused on negotiations to raise the debt limit of the US, the world's biggest oil consumer. A US default would likely spark chaos in financial markets and a spike in interest rates, impacting fuel demand growth both domestically and globally.</p>.<p>President Joe Biden and House Speaker Kevin McCarthy ended discussions on Monday with no agreement on how to raise the US government's $31.4 trillion debt ceiling and will keep talking with just 10 days before a possible default.</p>.<p>"The central focus for the broader risk environment has been revolving around the US debt ceiling talks, and while that is keeping a cautious lid on upside for now, a positive up move on any eventual resolution on that front may remain on the table," said Jun Rong Yeap, a market strategist at IG in Singapore. </p>
<p>Oil prices continued to climb on Tuesday with investors expecting a tighter market led by a seasonal rise in gasoline demand and supply cuts from OPEC+ producers, though concerns over the risk of a US debt default capped gains.</p>.<p>Brent crude futures rose 28 cents, or 0.37 per cent, to $76.27 a barrel by 0320 GMT while US West Texas Intermediate (WTI) crude was at $72.36 a barrel, up 31 cents, or 0.43 per cent.</p>.<p>It was the second day of gains after Brent rose 0.5 per cent on Monday. WTI gained 0.6 per cent, amid a 2.8 per cent increase in US gasoline futures ahead of the Memorial Day holiday on May 29 that traditionally marks the start of the peak summer fuel demand season.</p>.<p>"Oil prices are consolidating their bottoms, helped by a seasonal increase in US gasoline demand from next week, production cuts by OPEC+ from this month and planned US purchases to refill the Strategic Petroleum Reserve (SPR)," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.</p>.<p><strong>Also Read: <a href="https://www.deccanherald.com/business/business-news/fuel-starved-sri-lanka-enters-fuel-deal-with-china-s-sinopec-1221035.html" target="_blank">Fuel-starved Sri Lanka enters fuel deal with China’s Sinopec</a></strong></p>.<p>Last week, the US Department of Energy said it would buy 3 million barrels of crude oil to replenish the SPR for delivery in August.</p>.<p>Voluntary production cuts by the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, that went into effect this month are also expected to keep oil markets tight.</p>.<p>Goldman Sachs analysts said in a report on Monday that they "expect sustained (oil supply) deficits from June as OPEC+ production cuts fully realize and demand rises further."</p>.<p>Asia will lead much of that oil demand growth, adding about around 2 million barrels per day (bpd) of consumption in the second half of the year, a Vitol executive said on Monday.</p>.<p>Still, investors are also focused on negotiations to raise the debt limit of the US, the world's biggest oil consumer. A US default would likely spark chaos in financial markets and a spike in interest rates, impacting fuel demand growth both domestically and globally.</p>.<p>President Joe Biden and House Speaker Kevin McCarthy ended discussions on Monday with no agreement on how to raise the US government's $31.4 trillion debt ceiling and will keep talking with just 10 days before a possible default.</p>.<p>"The central focus for the broader risk environment has been revolving around the US debt ceiling talks, and while that is keeping a cautious lid on upside for now, a positive up move on any eventual resolution on that front may remain on the table," said Jun Rong Yeap, a market strategist at IG in Singapore. </p>