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Oil Drops a Third Day as Goldman Cuts Forecast for Brent Crude

Oil dropped for a third day in New York as investors speculated that fuel demand will falter amid slowing global growth and rising supplies. Goldman Sachs Group Inc. lowered its 2012 forecast for Brent crude.

Futures slid as much as 2.2 percent after falling yesterday to the lowest settlement in more than a year. European leaders indicated that investors may have to take bigger losses than previously assumed on Greek debt, while Goldman Sachs cut its 2012 Brent forecast to $120 a barrel from $130. U.S. crude inventories climbed for a second week, an Energy Department report tomorrow may show. Libya aims to raise production to more than 500,000 barrels a day by the end of this month, according to the chairman of state-run National Oil Corp.