Oil Falls From Near One-Week High After German Economy Shrinks

Oil fell from near the highest settlement in almost a week amid concern that a shrinking German economy may drag Europe into a recession, reducing demand.

Crude fell as much as 1.1 percent, equity markets retreated and the euro weakened against the dollar after Germany’s Federal Statistics Office said the biggest economy in the euro region contracted in the fourth quarter. Spanish factory output declined the most since 2009, a separate report showed. Futures earlier climbed 0. 2 percent after Iran’s Fars news agency said a nuclear scientist was killed in a bomb attack in Tehran, sparking concern supplies from Iran may be disrupted.