Crude Oil Falls as Drop in U.S. Housing Starts Damps Optimism

Oil fell to the lowest price in almost three months as U.S. housing starts dropped and industrial output stalled in April, damping optimism about the economic and fuel-demand outlook.

Crude slipped 0.5 percent after the Commerce Department said work began on 523,000 houses at an annual pace, down 11 percent from March. Production at factories, mines and utilities was unchanged, the Federal Reserve reported today. Yesterday, the dollar touched the highest level against the euro since March 29, reducing the appeal of commodities.