Crude oil futures surrender highs in Asian trade

Forexpros – Crude oil futures retreated from gains Monday, lifted earlier in the day by prospects of a resolution to the U.S. debt ceiling debate, as Congress was expected to vote on a framework measure later in the day.

On the New York Mercantile Exchange light, sweet crude futures for September delivery traded at USD95.38 a barrel during early Asian trade, falling 0.14%, after hitting a daily high of 97.86.

Negotiations between Republican lawmakers and U.S. President Barack Obama resulted late Sunday in the announcement that a deal to raise the nation’s USD13.4 trillion debt had been reached.

A vote in Congress was expected later Monday on the measure, that included USD2.1 trillion in spending cuts and would raise the debt limit before the August 2 deadline, averting a possible debt default by the world’s largest economy.

Meanwhile, weather officials were monitoring developments on Tropical Storm Eugene as it strengthened, possibly rising to hurricane status, as it moved through the Gulf of Mexico. Eugene could disrupt U.S. oil production in the Gulf, which represents 29% of the country’s total.

On the ICE Futures Exchange Brent oil futures for September delivery dipped 0.03%, to trade at USD116.88.

Italian lender Unicredit, earlier in the day, raised its Brent oil average price forecast by 16% for the remainder of the year to USD120 a barrel, noting supply disruptions in the North Sea.

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