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BEIJING, June 2 (Reuters) – Oil prices rose in early Asian trade on Friday as markets weighed the possibility of OPEC+ output cuts at the weekend, amid positive sentiment on U.S. monetary policy and Washington’s debt ceiling.

Brent crude futures were up 13 cents, or 0.18%, at $74.41 a barrel, while U.S. West Texas Intermediate (WTI) crude was up 15 cents, or 0.21%, at $74.41 a barrel. for $70.25 as a result of two consecutive days of price declines.

Markets were reassured by signals of a possible pause in interest rate hikes by the Federal Reserve, as well as the passage of a bill by the House of Representatives to freeze the US government’s debt ceiling, likely averting a catastrophic sovereign default.

The US debt ceiling bill is currently awaiting approval in the Senate, which Democratic Majority Leader Chuck Schumer said would remain in session until Thursday evening US time.

Market sentiment was also boosted by Thursday’s US crude stockpile data from the Energy Information Administration, which showed crude imports rose last week.

Investors’ attention is now focused on the June 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+.

Ministers from major oil-producing countries will decide whether to further cut production to support government revenues.

Further OPEC+ production cuts after their surprise cut of 1.16 million barrels per day in April will boost crude oil prices.

Signals on any such cut have been mixed, with Reuters reporting and bank analysts including HSBC and Goldman Sachs saying further output cuts are unlikely and that the bloc will adopt a “wait and see” approach. the approach.

Other market watchers pointed to weak production data from China and the US supporting the case for OPEC+ cuts.

In the US, the Institute for Supply Management (ISM) said on Thursday that its manufacturing PMI fell to 46.9 last month from 47.1 in April, the seventh straight month that the PMI stayed below the 50 mark. which indicates a reduction in production activity. the world’s largest consumer of oil.

Manufacturing data outside China showed a mixed picture. Thursday’s better-than-expected Caixin/S&P Global China manufacturing PMI contradicted official government data the previous day, which showed factory activity fell to a five-month low in May.

Reporting by Andrew Haley; Editing by Jamie Fried

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