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Oil Drops to Four-Week Low as Fed Sees Downside Risks to Economy

Oil fell to the lowest price in more than four weeks in New York after the U.S. Federal Reserve cited “significant downside risks” to the economic outlook in the world’s biggest crude-consuming nation.

Futures slipped as much as 5.5 percent, declining with other commodities and European equities markets. The Fed said it will buy $400 billion of long-term debt in an attempt to keep the economy from relapsing into a recession. U.S. gasoline stockpiles climbed more than forecast last week and the nation’s oil production rose to the highest in eight years, Energy Department reports showed.