Oil Falls as China Boosts Interest Rates, Portugal Rating Cut

Oil declined as China’s central bank raised interest rates, and after Moody’s Investors Service downgraded Portugal’s credit rating, heightening concern that slower economic growth will crimp fuel consumption.

Brent crude fell as much 1.5 percent, extending earlier losses as the People’s Bank of China said benchmark deposit and lending rates will rise 25 basis points from tomorrow. The euro weakened against the dollar after Moody’s cut Portugal’s rating to junk status, curbing the appeal of dollar-denominated assets such as crude. The industry-funded American Petroleum Institute will report weekly supply and demand data today.