Oil Slips on S&P, Saudi Arabia

 


U.S. crude oil futures ended lower on
Monday, snapping three days of gains, as ratings
agency & Poor's cut its long-term credit outlook for
the United States and Saudi Arabia reduced output
on weak demand for its crude. Although it affirmed
the United States' credit rating, Standard &
Poor's said there was a risk policymakers may not
reach agreement on how to address the country's
long-term fiscal pressures.
Meanwhile, OPEC member Saudi Arabia
Sunday confirmed it had cut output by more than
800,000 barrels per day in March because of weak
demand. Finally, oil investors expressed worries over
China's economic growth after the Asian powerhouse
raised banks' required reserves on Sunday, to 20.5
percent for the biggest banks. China's action was to
fight excessive liquidity and stubbornly high inflation.