Oil prices fell over $3 to near $83 a barrel Monday after Standard & Poor’s downgraded the U.S.’s credit rating — a blow to confidence that could hurt economic growth and demand for crude.
By early afternoon in Europe, benchmark oil for September delivery was down $3.52 to $83.36 a barrel in electronic trading on the New York Mercantile Exchange. Crude rose 25 cents to settle at $86.88 on Friday.
In London, Brent crude was down $3.58 at $105.79 per barrel on the ICE Futures exchange.
Oil plunged after Standard & Poor’s announced Friday it was lowering its rating for U.S. debt one notch from AAA to AA+. Investors are concerned the first-ever U.S. debt rating downgrade will batter already weakening consumer confidence and hurt economic growth.
Crude has dropped from $100 last month and near $115 in May.
