Oil Falls on Speculation Supplies Will Rise After Sandy

Oil fell to the lowest level in almost four months on speculation that the shutdown of refineries on the U.S. East Coast because of Hurricane Sandy will add to already ample supplies.

Futures dropped for a third week as Phillips 66 and Hess Corp.’s New Jersey refineries remain shut four days after the storm struck. Oil inventories exceeded 370 million barrels last week, the most for this time of year in at least 30 years. Prices extended losses as U.S. stocks erased gains and the dollar strengthened against the euro.