Oil Prices Fluctuate Amidst U.S. Default and Supply Concerns

Oil prices remain bearish due to concerns over a potential U.S. default, with Brent crude potentially posting its fifth monthly loss in a row. The ongoing negotiations on the U.S. debt ceiling have become the primary bearish factor for oil as fears mount that a debt default is not out of the question. However, the IEA recently forecast a deficit emerging in the second half of the year, which should have a positive effect on prices unless demand gets hurt by a U.S. default or another event of similar proportions.