FX.co ★ Oil Holds Steady On Modest Dollar Strength

Oil prices held steady on Tuesday after settling higher in the previous session on hopes that U.S. lawmakers will reach a debt ceiling deal soon to avert a debt default.

Both Brent crude futures and WTI crude futures were marginally higher at $76 a barrel and $72.06 a barrel, respectively.

Concerns around China's economic recovery and a firmer dollar in the wake of hawkish comments from Federal Reserve officials kept oil price gains in check.

There is no U.S. debt deal yet, though U.S. President Joe Biden and Republican House Speaker Kevin McCarthy called their latest round of negotiations on the debt ceiling "productive".

Meanwhile, OPEC Secretary-General Haitham Al Ghais reportedly said on Monday that under-investing in the oil and gas sector could cause market volatility in the long term and imperil growth.

OPEC estimates that the world needs $12.1 trillion in investments to meet rising oil demand in the long term.

In economic releases, a survey showed earlier today that the Eurozone manufacturing sector contraction deepened in May to hit a 36-month low due to weak demand and a fall in selling prices.

Elsewhere, British manufacturing and services PMIs for May surprised to the downside.