Oil Drops to One-Week Low on Italian Debt, China Import Report

Oil fell to the lowest level in a week in New York as concern that the European debt crisis will spread to Italy caused the euro to tumble against the dollar and a report showed Chinese imports slumped.

Oil dropped 1.1 percent as the euro slid to a seven-week low against the dollar after Germany’s Die Welt said the European Central Bank is forecasting a regional bailout fund may have to double to cover a crisis in Italy. Data showing a 10 percent decline in Chinese imports stoked concern that fuel demand in the biggest crude-consuming countries will wane in the wake of a U.S. employment report on July 8.