Oil Drops for Second Day as IEA Lowers Demand Forecast

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Oil dropped for a second day as the International Energy Agency cut its demand estimate and U.S. inventories were expected to reach a three-month high.

Prices fell 0.2 percent after the IEA lowered its forecast for the fourth quarter for a second time, citing weakness in Europe’s economy and disruption to U.S. fuel delivery by Hurricane Sandy. U.S. oil inventories probably rose to 377.3 million barrels last week, according to a Bloomberg survey. Oil erased losses earlier as U.S. stocks rallied.