Oil Drops on Demand Concerns After Fed Cuts U.S. Growth Forecast

Oil declined for the first time in four days in New York as investors speculated U.S. fuel demand may weaken after the Federal Reserve lowered its economic growth outlook for the world’s biggest crude-consuming nation.

Futures slipped as much as 4.5 percent after a report today showed U.S. jobless claims rose last week. Fed officials yesterday cut their forecasts for growth and employment this year and next, and an Energy Department report showed U.S. oil stockpiles fell less than forecast and inventories at Cushing, Oklahoma, the delivery point for the New York-traded West Texas Intermediate grade, increased for the first time in four weeks.