Oil prices rebounded on Friday from losses of more than 1% the previous day as investors turned cautiously optimistic over the fading risk of a US debt default.

Brent futures rose 73 cents, or 1.0%, to $76.59 a barrel, while US West Texas Intermediate crude climbed 62 cents, or 0.9%, to $72.48.

Earlier this week, US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reiterated their aim to strike a deal to raise the $31.4 trillion federal debt ceiling.

So far, the United States has never defaulted on its debt, but US Treasury Secretary Janet Yellen warned that if the Congress fails to act on the debt ceiling, the US economy is likely to enter a recession due to the worsening debt ceiling crisis in the country.

Source: Qatar News Agency