Oil headed for its first weekly advance in more than a month on optimism that the US will avert a catastrophic debt default.
West Texas Intermediate futures traded near $72 a barrel and are around 3% higher for the week. House Speaker Kevin McCarthy said negotiators may reach an agreement in principle as soon as this weekend. Crude buying by some Asian refiners added to bullish sentiment for the market.
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Oil is still down 10% this year as China’s lackluster economic recovery and monetary tightening by the Federal Reserve weigh on the outlook. Officials at the US central bank injected some uncertainty into the market, sounding increasingly split on whether to raise interest rates at their meeting next month or pause.
Wildfires continued to rage in Alberta, Canada’s top energy-producing province, disrupting output and adding some tightness to the market. Rystad Energy estimates that about 240,000 barrels a day has been shut due to the blazes.
