Oil Falls as Europe Debt Concerns Outweigh Supply Drop Forecast

Oil declined in New York as concern that Europe’s debt crisis will hurt economic growth outweighed forecasts that U.S. crude stockpiles dropped last week.

U.S. crude inventories declined 2 million barrels, or 0.6 percent, in the seven days ended Nov. 19 from 357.6 million a week earlier, according to the median of 11 analyst estimates before an Energy Department report tomorrow. Yields on Spanish and Portuguese debt rose, indicating that Ireland’s plan to seek a rescue risks escalating the crisis to the southern Europe nations with large budget deficits.