Crude prices fell to US$84 a barrel in Asia after Standard & Poor lowered the U.S. credit rating that shook market confidence that could negatively impact economic growth and demand for crude. New York’s main contract light sweet crude for September delivery tumbled by over two dollars to US$84.5, while Brent North Sea crude for September delivery sank by almost three dollars to US$106.4. The United States, the world’s largest oil consumer, saw its top-flight AAA credit rating downgraded for the first time when S&P cut it to AA+ with a negative outlook on concerns over its debt. S&P had been very clear about the criteria to be met by US to maintain AAA ratings, and the agreement reached last week had not fulfilled them. Lowering the US ratings results in decline in oil prices which reflects the general instability in global financial markets.
08-Aug-11 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}