Crude Oil Heads for Biggest Weekly Gain in a Month on U.S. Economy Outlook

Oil dropped from a two-year high in New York after China’s stock-index futures fell amid speculation the government may tighten monetary policy further in the world’s biggest energy user.

The January contract declined as much as 42 cents, or 0.5 percent, to $87.58 a barrel, in electronic trading on the New York Mercantile Exchange, and was at $87.59 at 12:38 p.m. Sydney time. Yesterday, it added $1.25 to $88, the highest settlement since Oct. 8, 2008.

To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

To contact the editor responsible for this story: Clyde Russell in Singapore at crussell7@bloomberg.net

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