The benchmark crude WTI is down 1.43% to $79.66 today at 10.56 a.m. EST as markets digest the U.S. debt downgrade by Fitch Ratings to AA+ from AAA.
While oil prices are still up nearly 13% over the past month, with a 3.25% slide to $2.48 today natural gas is now down nearly 10.9% during this period. Further, numbers from the Energy Information Administration point to a decrease of nearly 17 million barrels in crude inventories during the week ended July 28. In comparison, the Street had anticipated a decrease of only 1.37 million barrels for the week.
Additionally, numbers from the American Petroleum Institute indicate a decrease of nearly 15.4 million barrels in U.S. commercial stockpiles during the week ended July 28.
After months of weakness, oil prices had finally hovered above the $80 mark in the past few sessions. Despite today’s slide, a combination of undersupply, rising demand, China’s moves to prop up its economy (fake bears in zoos may probably not be one of them), and production cuts from oil majors Saudi Arabia and Russia are largely expected to keep oil prices buoyant over the coming months.
Meanwhile, the United States Oil Fund ETF (USO) is down 2.4% to $71.20 today but still remains 7.9% higher so far this year.
Here is a list of energy stocks that can be influenced by the latest developments in the energy markets.
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