Crude Futures Decline in New York on Record Spanish Bond

Oil dropped in New York as rising Spanish borrowing costs pushed the dollar higher, adding to concern that Europe’s debt crisis will curb crude demand.

Futures fell as much as 1.5 percent in New York after the Spanish 10-year bond yield rose to a euro-era record of 7.14 percent. Greece’s New Democracy and Pasok parties won enough seats to form a majority in the 300-member parliament, according to an official projection. Money managers cut bullish oil wagers for a sixth week, according to the Commodity Futures Trading Commission’s Commitment of Traders Report.