Oil prices eked out modest gains on Monday after U.S. President Joe Biden and House Speaker Kevin McCarthy, R-Calif., reached an agreement in principle to raise the debt ceiling and avoid a potentially disastrous default by the U.S. government.
Overall gains, however, remained capped by doubts about China's economic recovery and mixed messages from OPEC+ on production cuts.
Benchmark Brent crude futures rose 0.3 percent to $77.19 a barrel, while WTI crude futures were up 0.4 percent at $72.94.
The last-minute will raise the debt ceiling for two years and keep non-defense spending roughly flat for fiscal 2024 and increase it by 1 percent in fiscal year.
McCarthy told reporters Saturday evening that he expects the GOP-controlled House to vote on the agreement on Wednesday.
Meanwhile, China growth concerns resurfaced after data showed profits at industrial profits in China fell 20.6 percent in the January-to-April period from the same period the previous year.
Traders now look ahead to upcoming OPEC+ meeting for directional cues amid tensions between Russia and Saudi Arabia over output targets.
Russia prefers its partners of the OPEC+ group to leave oil production unchanged when it meets next week.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.