The S&P group rating downgrade took over Tuesday's trading session, sending riskier assets lower. This was including Crude Oil prices, which fell below $83 a barrel, a strong support level. The price of a barrel of light sweet crude oil opened at $82.30, higher compared to yesterday's price during New York closing.
Oil prices declined mainly on concerns about the strength of the economic recovery. Investors are extremely worried about European countries' mounting debts. Moreover, a U.S. barometer of oil inventories showed a larger than expected increase, which sent oil prices further down.
Better statistics on oil inventories are due to be published later today. However, in recent weeks oil prices were little changed following this figure. Oil is expected to continue its decline today, although on a more moderate level, $83 a barrel may turn out to be a healthy resistance level.