Oil fell from the highest in two weeks in New York after Standard & Poor’s cut credit ratings on some of the world’s biggest lenders, and amid signs of rising crude supplies in the U.S.
West Texas Intermediate futures slid as much as 0.9 percent, paring a second monthly gain. The industry-funded American Petroleum Institute said yesterday crude inventories climbed by 3.44 million barrels last week. S&P lowered the ratings of banks led by Goldman Sachs Group Inc., Bank of America Corp. and UBS AG. Prices rose yesterday after U.S. consumer confidence climbed the most in more than eight years and Iranian protesters vandalized the British Embassy’s compound in Tehran.
“The debt crisis is a very, very bearish factor in the market,” said Gerrit Zambo, a trader at Bayerische Landesbank in Munich who correctly predicted crude’s slump in September. “On the other hand, we’re at the start of winter now with some oil supplies at little bit tight, and some positive macro data in the U.S.”
Crude for January delivery fell as much as 87 cents to $98.92 a barrel in electronic trading on the New York Mercantile. It was at $99.27 at 10:30 a.m. in London. The contract yesterday advanced 1.6 percent to $99.79, the highest close since Nov. 16. Prices have risen 6.5 percent this month, after climbing 18 percent in October.