Oil prices drop due to Moody's downgrade of the U.S. credit rating and rising concerns about economic stability and global tensions.

U.S. crude futures declined more than $1 in early trade on Thursday after an unexpected build in U.S. crude oil inventories last week raised investor concerns about oversupply. U.S. West Texas Intermediate (WTI) crude futures slid $1.

Lower fuel costs could create savings for consumers, but economic threats posed by tariffs still a concern, a local economist said.