Black Gold Falls on Greek Austerity Vote, Stockpiles Rising

Oil fell from a two-week high in New York amid speculation that U.S. crude inventories rose last week and as Greece prepared to vote on austerity measures.

“Futures slid as much as 1.2 percent after surging 3.6 percent yesterday. Greek parliamentarians will vote later today on proposed spending cuts amid concern that Europe’s debt crisis may curb demand for fuels. U.S. oil stockpiles probably increased last week for a fourth time in five weeks, an Energy Department report may show today.

“Oil’s drop is reflecting some caution ahead of the Greek vote tonight,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. “There is concern that the austerity package will not pass the parliament and Greece will default as a result.”

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