Oil Falls to Eight-Month Low in New York as S&P Cuts U.S. Rating
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Oil fell in New York after Standard & Poor’s lowered the U.S. credit rating from the highest level, stoking concern an economic slowdown will worsen and cut fuel demand in the world’s biggest crude consumer.
Futures dropped as much as 4.9 percent to their lowest price in more than eight months. S&P cut the U.S.’s AAA rating to AA+ on Aug. 5 in response to a deal by President Barack Obama and lawmakers to raise the government’s $14.3 trillion debt limit. Oil pared losses after the European Central Bank was said to have bought Italian and Spanish government bonds.