Oil Falls After Cyprus Rejects Bank Deposit Tax

West Texas Intermediate oil fell after the Cypriot parliament defeated a measure imposing taxes on bank deposits, bolstering concern that Europe’s debt crisis will deepen. WTI’s discount to Brent crude traded in London narrowed to less than $15 a barrel.

Futures dropped 1.7 percent, trimming the spread with Brent oil, after Cypriot President Nicos Anastasiades failed to gain approval of the proposal to raise 5.8 billion euros ($7.5 billion) from bank depositors to unlock emergency loans. European officials had demanded passage of the plan in return for the funds to prevent a financial collapse. The euro fell to a three-month low versus the dollar.