World oil prices fall July 29, 2011, At New York's main contract, light sweet crude for September delivery fell 1.74 dollars to close at 95.70 dollars a barrel. In London, Brent North Sea crude oil for September delivery fell 62 cents to 116.74 dollars a barrel on the Intercontinental Exchange.
"The market is kept depressed by concerns about debt (ceiling) in the U.S., and the rate of gross domestic product (GDP) that came out this morning did not answer the expectations. It's bad news, the market continues to come down," said Tom Bentz, analyst for BNP Paribas oil.
The U.S. government reported that second quarter GDP grew only 1.3 percent, far below economists' expectations. The government also cut its first-quarter GDP growth forecast to just 0.4 percent from the initial estimate of 1.9 percent. It shows the economy nearly stalled recovery in the early years.
Meanwhile, politicians in Washington trying to reach an agreement to raise the limit on state borrowing 14.29 dollars on Tuesday (2 August) when the U.S. Treasury said it would run out of money to pay bills.
Even if Democrats and Republicans reached an agreement that was broken in the last minute, many observers worry, the agency will still be the highest credit ratings lowered the United States.
The move will also have a negative impact on financial markets and may further slow the growth in the U.S., the world's largest oil consumer.