Oil Falls as U.S. Economic Reports Signal Fuel Demand May Drop

Oil fell for the third day this week after the index of U.S. leading indicators dropped for the first time in 10 months in April and sales of existing U.S. homes declined, signals that fuel demand may weaken as the economy struggles to recover.

Oil tumbled 1.7 percent as the index, the New York-based Conference Board’s gauge of the economic outlook for the next three to six months, unexpectedly decreased by 0.3 percent after a revised 0.7 percent gain in March. Japan’s economy shrank more than estimated in the first quarter, a government report showed.