2023.05.3019:03:00UTC+00Oil Futures Settle Sharply Lower On Demand Concerns

Crude oil prices fell sharply on Tuesday, weighed down by doubts about China's economic recovery and uncertainty over whether the Congress will pass the debt deal this week.

Reports about a new coronavirus variant spreading in China raised concerns about the outlook for energy demand. According to reports, the new variant will likely infect nearly 65 million people every week by the end of June.

West Texas Intermediate Crude oil futures for July ended down $3.21 or about 4.4% at $69.46 a barrel, the lowest settlement in about 4 weeks.

Brent crude futures were down $3.16 or 4.1% at $73.94 a barrel a little while ago.

On the debt ceiling deal front, some Republican lawmakers have reportedly said they would oppose the deal to raise the United States' $31.4 trillion debt ceiling.

The package will be sent to the full House for a vote, likely to take place on Wednesday.

Meanwhile, there is uncertainty that the Organization of the Petroleum Exporting Countries and allies, scheduled to meet on June 4, will agree on increasing their output cuts.is scheduled to take place on June 4.