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

Oil prices reversed course to trade lower on Friday after reports that the debt ceiling talks between the White House and House Republicans have been paused, worrying markets of a possible default that could cut demand.

Brent futures fell 9 cents, or 0.1%, to $75.77 a barrel by 11:55 a.m. ET (3:55 GMT), while West Texas Intermediate U.S. crude for July expiry eased 22 cents, or 0.3%, to $71.74.

The less active U.S. crude contract for May, which is due to expire on Monday, eased 20 cents, or 0.3%, to $71.77.

Markets were also spooked by Federal Reserve Chair Jerome Powell’s comments that inflation was “far above” the Fed’s objective.