S&P downgrades Italy’s sovereign debt rating: crude dips on the Nymex

20-Sep-11

Oil prices were mixed in Asian trade after Standard & Poor's downgrade of Italy's sovereign debt rating, which raised nervousness in the market. The US credit ratings firm cut Italy's sovereign debt rating to "A/A-1" from a "A+/A-1+", because of weak economic growth and high government debt levels. S&P has a negative outlook on Italy's ratings, citing political and policy differences that will likely limit the country's ability to respond effectively to its debt crisis. Concerns abound that Europe's debt woes will exacerbate slowing global economic growth. Benchmark oil for October delivery was down saw a marginal dip to US$85.6 on the Nymex, while in London, Brent crude for November delivery rose by 10 cents at $109.2 on the ICE Futures exchange.