Tuesday saw a decline in oil prices as investors' risk appetite was lowered by worries about a potential U.S. debt default, but support was provided by a tighter market brought on by seasonal increases in gasoline demand and production curbs by OPEC+ producers.

The U.S. government's $31.4 trillion debt ceiling was not raised during Monday's negotiations between President Joe Biden and House Speaker Kevin McCarthy. The two men will continue their discussions even though there are only 10 days left before a potential default.

Brent crude slumped 0.3% to $75.73 per barrel meanwhile U.S. West Texas Intermediate plunged 0.3% to $71.81.

Prior to the Memorial Day holiday on May 29, which normally ushers in the peak summer demand season, gasoline futures in the United States gained 2.8%. This gave crude a boost on Monday.

The most recent U.S. inventory report, which analysts anticipate to show a little increase in crude stocks, is another item to watch. The American Petroleum Institute's first of two reports for the week.