Oil climbs after US leaders strike provisional debt deal

Oil prices increased in early Asian trade on Monday after the US leaders reached a debt ceiling deal. Brent crude futures climbed to $77.34 a barrel while US West Texas Intermediate crude was at $73.12 a barrel. US President Joe Biden and House Speaker Kevin McCarthy reached an agreement in principle to suspend the $31.4tn debt ceiling. However, the relief in global financial markets could be short-lived as the US Treasury is expected to issue bonds that will further tighten liquidity, making funding more expensive for companies already suffering from high interest rates.