Oil Drops on Speculation EU May Have to Bail Out More Members
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Oil dropped from the highest price in two weeks amid concern that the European Union may have to bail out more member states after Ireland agreed to a rescue package from the EU and the International Monetary Fund.
Futures fell as much as 1 percent as the euro weakened against the dollar. The cost of insuring against default on Portuguese and Spanish debt climbed to records yesterday after Ireland secured financial aid this weekend. Oil also retreated on speculation that measures to slow China’s economy will damp crude demand in the world’s largest energy user.