Oil Falls as German Manufacturing Output Contracts

Oil dropped as German manufacturing output unexpectedly contracted in March, signaling the euro-zone debt crisis is slowing growth in the region’s biggest economy.

Futures fell 1.1 percent after a purchasing managers’ index for Germany’s manufacturing slipped to 48.9 this month. The median forecast by economists called for a reading of 50.5, according to a Bloomberg survey. The European Central Bank said today it may cut Cypriot banks off from emergency funds after March 25 as the country’s president worked on a new plan to obtain a European bailout.