Crude Slips Back
Posted on: May 22nd, 2009 | By Doug Casey | Filed under Oil Investment & Alternative Energy
In the energy market on Thursday, crude for July delivery fell back, closing at $61.05/barrel, down 99 cents. June reformulated gasoline dropped just under a penny, to $1.7997/gallon.
Analysts cited concerns over the economy in the U.S., as well as the deepening recession in the U.K.
Britain took a hit yesterday as Standard & Poor’s lowered its credit outlook on the U.K. to negative from stable for the first time ever. The ratings agency cited the country’s ballooning debt, which could continue to expand even if the economy recovers.
The move raises the ugly prospect of a credit-rating downgrade in Britain, and hints at the possibility of a lowering of the outlook in the U.S., which has embarked on a similar path of big spending and quantitative easing.
“I think there will be a downgrade on the U.K. and I think there will be a downgrade on the U.S. outlook from one of the Big Three” credit-rating firms, said Stephen Gallo, analyst at Schneider Foreign Exchange.
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