World oil prices rebounded in Asian trade Monday after US President Barack Obama said a deal was arrived between Democratic and Republican lawmakers to raise nations debt ceiling.
Oil futures rose near 2 percent after the announcement which raised hopes for a speedy recovery of the US economy, the world’s largest oil consumer.
WTI Crude for September delivery was seen trading at $97.07 a barrel at 1.30 p.m Singapore time after hitting as high as $97.29 in early trade while London’s Brent crude was at $118.27 a barrel on the ICE exchange.
Brent is less than $9 from this year's peak above $127, while U.S. crude gained $1.45 to $97.15.
Analysts said the agreement brightens the outlook for energy use as it may help keep the fragile U.S. economic recovery on track.
The European benchmark contract was at a premium of $21.23 to New York futures, compared with a record close of $22.63 on July 14.
Meanwhile investors are also looking forward to the outcome of a possible hurricane threat as US National Hurricane Center said Tropical Storm Eugene may strengthen to become a hurricane by Tuesday.
The fifth named storm of the Eastern Pacific season is moving west-northwest over open water about 420 miles south-southwest of Acapulco, Mexico, at 10 miles per hour, the center said.
