Oil Falls, Heads for Weekly Drop, on U.S. Debt Ceiling Dispute

Oil fell, headed for the first weekly decline in five, on concern a failure to reach a deal on raising the U.S. debt limit may cause the nation to default, threatening the economy of the world’s biggest crude consumer.

Futures slipped as much as 0.6 percent after House Speaker John Boehner delayed a planned vote on debt-limit legislation as Senate leaders stood ready to kill the measure should it get to their chamber. Prices also dropped before a report forecast to show the world’s largest economy grew at the slowest pace in a year. U.S. crude stockpiles rose for the first time in eight weeks last week, Energy Department data showed July 27.