Concerns about the viability of raising the US debt ceiling are affecting oil prices. A few Republican lawmakers have expressed opposition to the deal, while President Joe Biden and House Speaker McCarthy remain optimistic about its passage. Republicans have argued that steep spending cuts are necessary to curb the growth of the national debt, which at $31.4 trillion is roughly equal to the annual output of the economy. The final agreement must be approved by a divided US Congress before June 5 - the deadline set by the Treasury Department for meeting the financial obligations. The uncertainty is keeping investors on their toes and creating a stand-off, according to Reuters. A default would take currency markets to places “the world’s not seen before" and that in turn would affect energy prices and trading as most of the crude oil is exchanged using the US dollar, according to S&P Global Commodity Insights “It will likely lead to severe recessions, which again will have an impact on energy consumption and demand,'' it added.