On Thursday, U.S. crude oil futures fell by more than 2%, as economic concerns persist. The impasse over the U.S. debt ceiling, rising initial jobless claims, and weak economic data from China have sparked investor worries about a global economic slowdown, resulting in a more than 2% drop in oil prices at the end of the session.
According to reports, U.S. Treasury Secretary Janet Yellen has urged Congress to raise the federal debt limit of $31.4 trillion to avoid an unprecedented default that could trigger a global economic downturn. Analysts say that uncertainty surrounding the U.S. debt ceiling could result in tightened credit for much of the oil industry, which would be a significant obstacle for the oil market. U.S. crude fell by 2.3% and London crude fell by 1.9%.
On the New York Mercantile Exchange, June light crude oil futures fell $1.69 to settle at $70.87 per barrel. June heating oil fell $0.04 to settle at $2.35 per gallon, and June RBOB gasoline fell $0.03 to settle at $2.46 per gallon. On ICE Futures Europe, September Brent crude futures fell $1.43 to settle at $74.98 per barrel.
