Crude oil fell the most in a month after U.S. consumer spending dropped for the first time since April, increasing skepticism that the economy will strengthen. Oil decreased as much as 3.8 percent and equities declined after the Commerce Department said purchases slipped 0.5 percent in September in the world’s biggest energy consuming country. Futures climbed the most in two weeks yesterday after a government report that the U.S. grew in the third quarter.
“People are still antsy that this will be a tepid recovery,” said Chip Hodge, who oversees a $9 billion natural- resource bond portfolio as senior managing director at MFC Global Investment Management in Boston. “Given where the economy is, $80 oil doesn’t make a hell of a lot of sense.” Crude oil for December delivery fell $2.83, or 3.5 percent, to $77.04 a barrel at the 2:30 p.m. close of floor trading on the New York Mercantile Exchange. Prices are down 4.3 percent this week, the first decline this month. Futures are set to gain 9.1 percent in October, the biggest monthly increase since a 30 percent rally in May.....Read the entire article.
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