Wednesday, 03 August 2011 19:37

Crude Prices stepping down

At the start of the week, the US government accepted the deal to raise the country's borrowing limit by $2.1 trillions. This way, they could avoid the bankrupt in the last minute, but everybody knows, this situation is not a stable one.

It is still no surprise, that a lot of people, traders, economics and others are frightened about the upcoming developments. According to the National Bureau of Economic research, there is a 50% chance the United States will fall back in the downward trend.

Even the new 140,000 jobs added this month, don't still the panic. And all this has a great impact on the crude oil prices. Surprisingly, the prices started to drop. The WTI declined 1,8%, $92.11 per barrel. Brent crude experienced a bigger fall. Almost 2.57%, which makes a barrel cost $113.34.

According to the American Petroleum Institute (API), the U.S. oil stocks dropped down by 3.3 million barrels last week. However, this shouldn't be something new, since we're having high season. Everybody is driving, gasoline and fuel are used every day and the refineries operate at 89.3% of their operable capacity.

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