Oil fell to a six-month low as investors speculated Spanish banks may have their credit ratings lowered and an American gauge of manufacturing trailed projections, bolstering concern that economic growth will slow.
Oil rose as the reversal date for the Seaway crude pipeline was moved up, causing the spread between New York-traded futures and Brent in London to narrow. Retail sales in the U.S. increased more than forecast in March.
Oil rose to a two-week high in New York after the Federal Reserve and five other central banks made additional funds available to ease strains from Europe’s debt crisis and as U.S. companies added more workers than projected.
Oil gained for the first time in three days as claims for U.S. unemployment benefits dropped to a four-year low and equities pared losses, raising hopes that demand will grow in the world’s leading user of crude.