Oil Falls, Heading for Quarterly Decline on Europe Debt Crisis

Oil fell in New York, heading for the biggest quarterly decline since 2008, on speculation that fuel demand will drop as the U.S. economy slows and Europe’s debt crisis batters consumer sentiment.

Futures slipped as much as 2.1 percent after posting the biggest gain in four months yesterday. U.S. inventories of gasoline and crude oil increased last week, according to a Bloomberg News survey before today’s Energy Department report. Commerce Department data today showed U.S. durable goods orders fell and a report tomorrow may confirm European consumer confidence slid to a two-year low in September.