Oil Caps Biggest Monthly Drop in More Than Three Years

Oil capped the biggest monthly drop in more than three years on speculation that slowing U.S. growth and Europe’s debt crisis will reduce fuel demand.

Futures decreased 1.5 percent after more Americans applied for jobless benefits and the nation’s gross domestic product expanded more slowly than estimated. Fitch Ratings downgraded eight Spanish regions’ credit, stoking concern the crisis will force lenders to bail out of the country. A government report showed U.S. crude supplies rose to a 22-year high.