Economics
Oil Drops After German Bond Sale Signals Deepening Euro Crisis
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Oil dropped from a three-day high in New York as a shortfall of bids in a German bond sale signaled a deepening of Europe’s debt crisis and slowing economic growth in the region.
Futures fell as much as 2.3 percent after Germany failed to get sufficient bids at an auction of benchmark 10-year bunds today to reach its maximum sales target. European services and manufacturing output contracted for a third month in November as the worsening debt crisis pushed the region closer to a recession. The American Petroleum Institute said yesterday motor-fuel supplies climbed 5.42 million barrels last week.