Oil Falls a Second Day as IMF Cuts U.S., Japan Growth Forecasts
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Oil fell for a second day because of concern fuel demand will slow after the International Monetary Fund cut its U.S. and Japan growth forecasts, saying high crude prices pose a risk to global economic expansion.
Futures headed for their biggest two-day drop in almost five months after the IMF said in its World Economic Outlook that the U.S. economy will expand at a slower pace than in 2010 amid an unemployment rate above 8 percent and a drop in consumer confidence. Oil also slipped as the African Union tried to negotiate a cease-fire in Libya and Nigeria prepared for a presidential election after violent clashes since July.