Patrick De Haan, head of petroleum analysis at GasBuddy, also pointed to “growing skepticism” about the debt ceiling agreement and the risk that a failure to raise the borrowing limit sets off a “deep recession” that curbs demand for oil. That’s spooking the market, no doubt about that,” said Robert Yawger, vice president of energy futures at Mizuho Securities. “It’s not a layup that the debt deal is going to get done. Oil market veterans blamed Tuesday’s decline in part on worries about whether conservatives in the House of Representatives will try to block the bipartisan deal to raise the debt ceiling forged over the weekend by President Joe Biden and House Speaker Kevin McCarthy. The national average for a gallon of regular gasoline is down by about $1 from a year ago. The selloff marks one of the worst days of the year for the oil market and could help keep a lid on pump prices. US oil prices dropped below $70 a barrel Tuesday on concerns about whether the debt ceiling deal will make it through Congress and on reports of tensions between Saudi Arabia and Russia ahead of a key OPEC+ meeting.Ĭrude slumped 4.4% to close at $69.46 a barrel, the lowest settlement price in nearly four weeks.

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