HOUSTON: 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 per cent, to $75.77 a barrel by 11:55 a.m. ET (3:55 GMT), while West Texas Intermediate US crude for July expiry eased 22 cents, or 0.3pc, to $71.74.

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

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

“It doesn’t look they are going to get the debt deal done today… there’s not a lot for the bulls to hang their hats on,” said Mizuho analyst Robert Yawger.

Published in Dawn, May 20th, 2023