Oil prices ticked up on Monday as U.S. officials negotiated a tentative debt ceiling agreement, possibly preventing a default in the largest economy and major oil user in the world, but gains were limited by worries about future interest rate increases.

Brent crude futures advanced by 0.6%, to $77.40 per barrel, while West Texas Intermediate crude added 0.7% at $73.2 per barrel.

On the weekend, House Speaker Kevin McCarthy and U.S. President Joe Biden reached a deal to suspend the $31.4 trillion debt ceiling and set a spending ceiling for the government for the following two years. The Democratic and Republican parties' members are expected to vote in favor of the agreement, according to both leaders.

The achievement of the agreement and the proximity to preventing a default on U.S. debt increased investor interest in risky assets like commodities.

WTI and Brent both gained more than 1% last week, continuing their recent upward trend.

For hints on economic growth and oil demand, investors will be keeping an eye on the Chinese data and the U.S. nonfarm payroll statistics this week.