2023.05.2509:56:00UTC+00Oil Prices Decline As Growth Worries Resurface

Oil prices fell more than 1 percent on Thursday as worries over U.S. debt ceiling persisted and growth worries resurfaced.

A stronger dollar and disappointing GDP data from Germany also weighed on prices.

Benchmark Brent crude futures fell 1.20 percent to $77.43 a barrel, while WTI crude futures were down 1.3 percent at $73.36.

The dollar hit a two-month high against the euro and a six-month peak versus the yen as U.S. debt ceiling talks showed no progress.

Speaker Kevin McCarthy is insisting it's not his fault if the U.S. defaults on its debt.

With just over a week left - including a holiday weekend - U.S. Treasury Secretary Janet Yellen reiterated her dire warning that the U.S. could have a hard time paying its bills.

Fitch Ratings along with Moody's and S&P placed the United States "AAA" credit on "rating watch negative," signaling downside risks to U.S. creditworthiness.

Growth concerns also resurfaced after official data showed German economy entered a technical recession in the first quarter of this year.

GDP declined a seasonally and calendar adjusted 0.3 percent from the fourth quarter of last year as household consumption slumped amid the rising cost of living that is fueled by high inflation, revised data from the statistical office Destatis showed.

"After growth entered negative territory at the end of 2022, the German economy has now recorded two consecutive negative quarters," Destatis President Ruth Brand said.