Oil Falls on Supply Forecast Amid Budget Talks

Oil fell for a second day as U.S. crude inventories were forecast to increase and as Senate Majority Leader Harry Reid said budget talks in Washington have made little progress.

Prices dropped 0.6 percent as oil supplies probably grew by 350,000 barrels last week, according to analysts surveyed by Bloomberg before an Energy Department report tomorrow. The budget outlook overshadowed data showing more demand for U.S. capital goods and a four-year high in consumer confidence.