Oil prices were lower today, settling more than 2% despite a historic drop in crude inventories. Crude stocks fell 17MM/bbls last week, the largest drop in inventories ever going back to 1982. Increased refinery runs and strong exports led this larger than expected decline. Ratings agency Fitch downgraded the US government’s top credit rating, an unprecedented move that led financial markets lower. The US government also pulled an offer to buy 6MM/bbls for the SPR which pushed prices lower. Total product supplied (refined products demand) was down last week 1.3MM/bbls. “Chinese crude buying has been opportunistic rather than due to higher demand. (The) market continues to be driven purely by supply constraints, which are always subject to potential political volatility,” said Sparta Commodities’ Philip Jones-Lux. WTI traded down $1.88 or -2.3% to close at $79.49. Brent traded down$1.71 or -2% to close at $83.20.