Oil Plummets on U.S. Negative Credit Outlook
    2011-04-19 04:49:06     Xinhua      Web Editor: liuranran
U.S. crude oil price dropped sharply on Monday as Standard & Poor's cut the U.S. credit outlook to negative and the largest OPEC oil producer Saudi Arabia confirmed an output drop in March on weaker demand.
Audio

U.S. crude oil price dropped sharply on Monday as Standard & Poor's cut the U.S. credit outlook to negative and the largest OPEC oil producer Saudi Arabia confirmed an output drop in March on weaker demand.

The S&P left its AAA rating for U.S. credit unchanged, but lowered its outlook on U.S. debt from "stable" to "negative," citing "material risks" that U.S. policymakers might fail to deal with the rising budget deficits and debt.

The New York-based rating agency said in a report on Monday: " If an agreement is not reached and meaningful implementation does not begin by then, this would in our view render the U.S. fiscal profile meaningfully weaker than that of peer 'AAA' sovereigns."

Meanwhile, Saudi Arabia confirmed on Sunday it had cut output by more than 800,000 barrels per day in March as it thought the market was oversupplied, because the high oil price has hurt the demand.

Besides, oil investors worried about China's economic growth after the world second largest economy tightened its monetary policy on Sunday by raising the banks' reserve ratio by 50 basis points to fight high inflation.

Light, sweet crude for May delivery lost 2.54 dollars, or 2.32 percent, to settle at 107.12 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery also plunged and last traded below 122 dollars a barrel.

Share

               


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. No person, organization and/or company shall reproduce, disseminate or broadcast the content in any manner whatsoever without the express written permission of CRIENGLISH.com.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Audio Reports more »
Biz Life more »
Policy more »
Markets more »

News
China
World
Politics
Business
Sports
Showbiz
Sci-tech
Photo
Recommended
China
World
Sports
Showbiz
Travel
Video
C4
The Sound Stage
Showbiz
Travel
China Revealed
My Chinese Life
Travel
Destinations
Photo Gallery
Recommended
Learn Chinese
"In" Chinese
Chatting in Chinese
Pop Culture
Traditional Culture
Living Chinese
Chinese Studio
Chinese Class
Learn English
Special English
Pop Chart
Everyday English
Fabulous Snaps
CRI News
China.org.cn  | Xinhua  | People's Daily Online   |  CNTV.cn  | China Daily  |  Global Times  | China Job  |  China Tibet Online  | Taiwan.cn  | eBeijing  | Beijing Today  | China-Eurasia Expo  | APEC Yiwu Conference  | Chinese Embassy in S.Africa  | Chinese Embassy in Australia  | Chinese Embassy in NZ