Oil rises in price on risky market sentiment

Global oil prices rose on June 2 morning, according to trading data.

Markets are paying attention to the news about the agreements on the US debt limit, which supports the risk appetite of traders, as well as waiting for the OPEC+ meeting.

According to Prime, the price of August futures on Brent crude oil is currently up 0.54 per cent to $74.68 per barrel while July futures on WTI crude oil are up 0.53 per cent to $70.47.

Both benchmarks recovered from two-straight sessions of losses after the House passed a bill late on May 31 to suspend the US government's debt ceiling and improve chances of averting a default. The legislation now moves to the Senate.

"The successful debt ceiling negotiations clear that minefield, but the overall demand outlook is still murky - the trucking space is doing poorly, for example," CFRA Research analyst Stewart Glickman said, Reuters reports.

The market's focus has also shifted to a June 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, collectively called OPEC+.

"The OPEC+ meeting this weekend may be leading to a little caution around those (low price) levels, particularly in light of the 'watch out' warning from the Saudi energy minister," OANDA analyst Craig Erlam said.

Four sources from OPEC+ told Reuters that the alliance is unlikely to deepen supply cuts at the Sunday meeting, but some analysts maintain that it is a possibility as demand indicators from China and the US have been disappointing in recent weeks.

US crude oil stockpiles rose unexpectedly last week, as imports jumped and strategic reserves dropped to their lowest since September 1983, according to data from the Energy Information Administration.

"Third Bridge experts would not rule out more aggressive actions from OPEC+, but the tug-of-war right now in the market is the seasonal versus the cyclical," Third Bridge analyst Peter McNally said.