Oil Drops From Seven-Week High on Outlook for Economy

Oil fell from a seven-week high in New York on concern fuel demand may falter after China signaled more economic weakness and analysts cut their profit forecasts for European companies at the fastest rate since 2009.

Futures slid as much as 0.7 percent after advancing a fifth day yesterday, the longest run of gains since April. The labor situation in China, the world’s second-biggest crude user, will become more “severe,” Premier Wen Jiabao said, according to a statement on the government’s website. Profits at Euro Stoxx 50 Index companies will rise 6.8 percent this year, more than 12,000 estimates compiled by Bloomberg show. That compares with a 19 percent gain predicted at the start of the year.