Oil Falls, Caps First Weekly Drop Since June on U.S. GDP, Debt

Oil fell, capping its first weekly drop since June, as the U.S. economy grew less than estimated in the second quarter and a deadlock of U.S. lawmakers over raising the debt limit further threatened expansion.

Futures tumbled 1.8 percent after the Commerce Department reported that gross domestic product climbed at a 1.3 percent annual rate, less than the 1.8 percent median estimate of economists surveyed by Bloomberg News. The Treasury Department has set an Aug. 2 deadline for increasing the U.S.’s $14.3 trillion debt limit to avert a default.