Oil slips as economic jitters offset U.S. debt deal

Oil prices slipped on Monday as economic worries over further interest rate hikes trumped a tentative debt ceiling deal reached in the U.S., possibly averting a default in the world’s largest economy and oil consumer.

Brent crude futures slipped 68 cents, or 0.8%, to $76.27 a barrel by 1350 GMT, while U.S. West Texas Intermediate crude was at $72.11 a barrel, down 56 cents or 0.7%.

Trade is expected to be subdued on Monday because of UK and U.S. public holidays.

U.S. President Joe Biden and House Speaker Kevin McCarthy over the weekend forged an agreement to suspend the $31.4 trillion debt ceiling and cap government spending for the next two years. Both leaders expressed confidence that members of the Democratic and Republican parties will vote to support the deal.