Oil settles higher, records second straight gain

Oil prices settled higher today, May 26, amid investor anticipation of OPEC+ meeting and optimism for an imminent end of the US debt crisis.

Brent crude for July delivery gained 0.9%, or $0.69, to $76.95 a barrel with a weekly rise of 1.8%.

Meanwhile, WTI crude for July delivery settled 1.2% $0.84, higher at $72.67 a barrel, recording a weekly gain of 1.4%.

US President Joe Biden and top congressional Republican Kevin McCarthy are closing in on a deal that would raise the government's $31.4 trillion debt ceiling for two years while capping spending on most items, a US official told Reuters.

Meanwhile, Republican negotiators have backed off plans to increase military spending while cutting non-defense spending and instead backed a White House push to treat both budget items more equally.

Russia is leaning towards leaving oil production volumes unchanged ahead of an OPEC+ policy meeting on June 4, Reuters reported.

On the other hand, oil weekly gains were curbed by expectations for a continued monetary policy in the US and Eurozone, which might limit market demand.