BLBG:Oil Drops for Third Day on U.S. Fuel-Consumption Drop, Spain’s Downgrade
Oil slid for a third day in New York, paring a weekly gain, on signs of slowing fuel consumption in the U.S. and a worsening debt crisis in Europe.
Crude for November delivery dropped as much as 28 cents, or 0.3 percent, to $83.95 a barrel in electronic trading on the New York Mercantile Exchange and was at $84.01 at 11:39 a.m. Sydney time. The contract fell 1.6 percent yesterday to $84.23, the lowest close since Oct. 7. Prices are up 1 percent this week and 8.1 percent lower this year.
U.S. crude inventories climbed 1.34 million barrels last week and total products supplied, a measure of fuel use, slid an average 364,000 barrels a day to the lowest in four weeks, according to the Energy Department.
Standard & Poor’s Ratings Services cut Spain’s long-term sovereign credit rating to AA- from AA, citing risks to growth prospects.
To contact the editor responsible for this story: Paul Gordon at pgordon6@bloomberg.net
