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2023.06.0209:53:00UTC+00Oil Extends Rally As US Senate Clears Debt Ceiling Bill

Oil prices climbed on Friday to extend the previous session's rally as traders look ahead to the oil producer cartel's meeting on Sunday.

A weaker dollar buoyed prices after the U.S. Senate approved compromise, bipartisan legislation to lift the debt ceiling by a bipartisan 63-36 vote.

Benchmark Brent crude futures jumped 1.6 percent to $75.48 a barrel, while WTI crude futures were up 1.7 percent at $71.26.

OPEC and its allies are unlikely to deepen supply cuts at their ministerial meeting on Sunday after Saudi Arabian and Russian ministers offered mixed signals on plans to trim production.

The U.S. debt ceiling bill will now be sent to President Joe Biden and will become law after his signature. The bill is likely to be approved before the June 5 deadline.

The dollar extended slide after Philadelphia Federal Reserve President Patrick Harker said the Fed should probably skip raising interest rate at its next policy meeting.

Focus now shifts to the monthly U.S. jobs report due later in the day, which could impact the outlook for interest rates.

Economists expect employment to increase by 190,000 jobs in May after an increase of 253,000 jobs in April. The unemployment rate is expected to inch up to 3.5 percent from 3.4 percent.

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