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

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

Futures slipped as much as 1.5 percent after Fed officials yesterday cut their forecasts for growth and employment this year and next. 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.