Oil prices erased early gains to return to trade lower on Tuesday as the US dollar continued to strengthen.
Heading into the opening of the European session, Brent crude oil futures traded lower at around $76 per barrel, while US WTI traded at $72 per barrel.
Agreement on the debt ceiling issue over the weekend initially provided support for crude oil to trade higher.
However, with risks still present as it still needs to be approved by the US Congress before June 5, the market is again cautious.
The debt deadline coincides with the June 4 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies known as OPEC+.
At this point, there is uncertainty as to whether they will make additional cuts in production amid the recent slump in oil prices.
Saudi Arabia's Energy Minister Abdulaziz bin Salman last week warned short sellers to be careful betting that oil prices will fall.
Investors saw the warning as a signal that OPEC+ might implement cuts in production.
