By Virginia Harrison, MarketWatch
SYDNEY (MarketWatch) — Crude-oil futures bounced in electronic trading Monday after U.S. lawmakers agreed on a deal to raise the nation’s debt ceiling just days ahead of a deadline required to avert a default.
Crude for September delivery CL1U +1.43% added $1.21, or 1.3%, to $96.91 a barrel on the New York Mercantile Exchange during Asian trading hours.
The gains followed oil settling at its lowest level in two weeks Friday, as a weak gross domestic product data and the U.S. debt-ceiling impasse weighed on the outlook for energy demand. Read more about Friday’s oil moves.
On Sunday, President Barack Obama and Senate leaders said they had reached agreement on a “framework” debt deal that will cut spending and increase the federal debt ceiling.
President Obama, Senate Democratic leader Harry Reid and Senate Republican leader Mitch McConnell said the agreement would lift the cloud of possible default that has hovered over global financial markets. Read more on the U.S. debt deal.
The news sparked a relief rally across Asian markets, and saw investors sell out of the traditional safe-haven of gold. Read more about Asian stocks and read more about metal markets.
Virginia Harrison is a MarketWatch reporter based in Sydney.
