Oil Prices React to US Debt Talks and Strong Fuel Demand

Strong demand for oil products is boosting oil prices, with US gasoline futures lifting WTI and Brent above $72 and $76 per barrel, respectively. The risk of a US default and the upcoming OPEC+ meeting are the two major factors oil markets are watching. Chevron has agreed to buy shale producer PDC Energy in a stock-and-debt deal worth $7.6 billion, adding 260,000 b/d of oil equivalent in output. Nigeria’s Bayelsa state claims it needs $12 billion to clean up decades-old oil spills, singling out ENI and Shell as the main culprits. Brazil’s Petrobras said that the second exploration well drilled in the Aram pre-salt block off Sao Paulo’s coast discovered commercial reserves of oil, boosting reserves.