Oil pump
Oil prices fell 2 percent when settling on Wednesday, despite the historic decline in crude inventories in the United States, as traders reluctance to take risks after the downgrade of the US government’s credit rating from a major rating agency.
The Energy Information Administration said today that US inventories of crude oil fell last week by 17 million barrels, which is the largest weekly decline ever.
Despite the record decline, US oil prices fell amid declines in financial markets after Fitch Ratings downgraded the US government’s top credit rating.
price movements
US crude futures fell by $1.88, or 2.3 percent, at settlement to $79.49 a barrel, while Brent crude futures fell $1.71, or two percent, to $83.20 a barrel.
The two benchmarks rose by more than a dollar earlier in the session, supported by the decline in inventories, which was shown by data published on Tuesday.
Oil stocks also began to decline in other regions as demand exceeded available supplies, which resulted from significant production cuts by Saudi Arabia.
Concerns are also growing that oil purchases will slow down in China, the world’s largest oil importer, due to higher prices.
Analysts expect Saudi Arabia to extend its voluntary cut in oil production by one million barrels per day for another month, including September, during a meeting scheduled for Friday.
#America
#global economy
2023-08-02 20:35:11
#Oil #falls #settlement #decline #crude #stocks #America
