Oil prices settled higher today on optimism over oil demand and US debt ceiling negotiations. President Biden and Speaker McCarthy both reiterated their determination to reach a deal soon after a month-long standoff. The two will now be negotiating directly. “Today’s strong oil trade was all about the expectation of a debt ceiling agreement, likely by the end of this week, that appeared to lift a negative burden across most asset classes, including oil,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois. This outweighed a crude inventory build of 5MM/bbls vs a forecasted drop of 900K/bbls. WTI traded up $1.97 or 2.8% to close at $72.83. Brent traded up $2.05 or 2.7% to close at $76.96.