US Debt

Crude oil declined to a seven-week low after a gauge of U.S. manufacturing showed growth at the slowest pace in two years, a sign the economic expansion will continue faltering.
America’s debt ceiling, agreement may have helped prevent a crash of the economy in the short term, but there’s still a lot to worry about, The economy hardly grew in the first half of the year and the outlook for growth isn’t promising.
Crude for September delivery fell 81 cents, or 0.9 percent, to $94.89 a barrel on the New York Mercantile Exchange, the lowest settlement price since June 29. Prices are up 20 percent over the past year.
Brent for September settlement gained 7 cents to $116.81 a barrel on the London-based ICE Futures Europe exchange. The European benchmark contract was at a $21.92 premium to New York futures, down from a record $22.63 on July 14, based on closing prices.
The initial euphoria over the debt ceiling was overdone, and the ISM report is a sobering reminder of the problems we the US faces. The S&P turned on the manufacturing numbers and oil followed.

US Debt Ceiling will raise the $14.3 trillion debt ceiling through 2012, cut spending by about $1 trillion and call for enactment of a law shaving another $1.5 trillion from long-term debt by 2021, or institute punishing reductions across all government areas, including Medicare and defense programs, according to congressional officials.

The Organization of Petroleum Exporting Countries’ crude output rose in July to the highest level since December 2008, led by gains in Saudi Arabia and Angola, according to a WorldWatch News survey. Production increased 245,000 barrels, or 0.8 percent, to average 29.565 million barrels a day, according to the survey of oil companies, producers and analysts.