Oil Drops for Second Day on Concern European Crisis Will Deepen
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Oil fell for a second day in New York as investors speculated Europe’s debt crisis may cause the euro area to fracture and threaten the region’s economy.
Futures slid as much as 0.6 percent, after declining 1.1 percent yesterday in the biggest drop in two weeks. A senior German lawmaker said Chancellor Angela Merkel’s Christian Democratic Union may adopt a motion to allow countries to exit the euro. Crude’s relative strength index approached a level that typically indicates prices may be unsustainable. Brent’s premium to U.S. contracts was near the lowest this month.