Futures & Commodities Update

Oil Drops In New York As Europe Concern Weighs On Demand Outlook

Oil dropped a second day in New York, trimming a weekly gain, on speculation Europe’s economy will weaken, threatening global growth and demand for raw materials.

Futures slipped as much as 0.7 percent, extending the 0.5 percent decline from July 3, after European Central Bank President Mario Draghi said some “downside risks to the euro- area economic outlook have materialized” as the ECB cut interest rates to a record low. London-traded Brent surged 0.9 percent yesterday as Norwegian oil producers planned to shut all offshore operations amid an 11-day strike over pensions.

Oil for August delivery decreased as much as 63 cents to $86.59 a barrel in electronic trading on the New York Mercantile Exchange and was at $86.75 at 9:10 a.m. Sydney time. Prices are 2 percent higher this week for a second weekly gain, the longest winning streak since April. Crude is down 12 percent this year. Full story