Oil edges lower as debt talks pause, Fed warns of high inflation

Oil prices fell on Friday due to concerns over the debt ceiling talks between the White House and House Republicans being paused, which could lead to a possible default. Brent crude futures declined 0.1% to $75.77 a barrel, while West Texas Intermediate U.S. crude for July delivery fell 0.3% to $71.74 a barrel. The potential for additional rate hikes by the US Federal Reserve also raised concerns about demand weakness. However, analysts expect China’s oil demand to continue to increase throughout 2023 which should offset the slowdown in OECD demand.