Oil prices edge down despite record US crude digestion

International benchmarks for crude oil plunged 2% on Wednesday, 2 August 2023 despite a striking reduction in US crude stocks, dropping to levels back in 1982, according to the Energy Information Administration (EIA).

The energy complex joined the global financial market in a meltdown after rating agency Fitch strip the US of its top-tier credit rating citing “the repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management.” 

Investors temporarily took their eyes off the historical reductions in the US commercial crude inventories of 17 million barrels last week. 

Brent crude concluded the session $1.71 or 2% lower at $83.20/barrel.

US West Texas Intermediate dropped $1.88 or 2.3%, now at $79.49/barrel.