Oil Drops on Concern European Debt Crisis Will Curb Fuel Demand

Crude oil declined as Europe’s sovereign debt crisis deepened, bolstering concern that economic growth will slow and fuel consumption decline.

Futures slid 2.4 percent as Greece struggled to complete a fifth austerity plan to keep pace with its deficit. Belgium had the outlook on its debt rating lowered to negative at Fitch Ratings today and Standard & Poor’s said on May 20 it may cut Italy’s credit standing. The dollar rose to a nine-week high versus the euro, curbing the appeal of commodities.