Oil Tumbles to Four-Week Low on Signals China Will Raise Rates

Crude oil declined to a four-week low on speculation that China will raise interest rates, slowing economic growth in the world’s biggest energy-consuming country.

Oil fell 2.3 percent after Chinese Premier Wen Jiabao said the government was drafting measures to counter inflation. Prices also dropped on concern Europe’s debt crisis is worsening as ministers considered a rescue package for Irish banks. Futures rebounded briefly after an Energy Department report showed U.S. crude supplies slid 7.29 million barrels last week.