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Oil steady as U.S. default risk offsets demand outlook

The June WTI contract , which expires later on Monday, fell 10 cents to $71.45 a barrel.

Reuters

SINGAPORE: Oil prices were steady on Monday as caution relating to U.S. debt ceiling talks dragged on optimism over demand later in the year and offset support from lower supplies from Canada and OPEC+ producers.

Brent crude futures rose 13 cents, or 0.2%, to $75.71 a barrel by 0850 GMT, while U.S. West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, rose 12, or 0.20%, to $71.81.

The June WTI contract , which expires later on Monday, fell 10 cents to $71.45 a barrel.

Talks to avert a default on U.S. debt were set to resume in Washington on Monday, as the prospect of a default and resulting possible economic downturn and cooling of fuel demand continued to spook markets.

Still, the International Energy Agency (IEA) warned of a looming shortage in the second half when demand is expected to eclipse supply by almost 2 million barrels per day (bpd), the Paris-based agency said in its latest monthly report.

Those moves are not expected to change the supply situation for crude and oil products, the IEA Executive Director Fatih Birol told Reuters on the sidelines of the G7 summit.

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