Bloomberg Oil Falls the Most in Four Weeks as Stocks Drop, Dollar Gains

March 30 (Bloomberg) -- Crude oil fell the most in four weeks as tumbling equity markets signaled that the recession in major energy-consuming countries may deepen, curbing fuel use.

Oil dropped 7.6 percent after President Barack Obama said that General Motors Corp. and Chrysler LLC have one last chance to “fundamentally restructure.” The dollar strengthened to its highest level against the euro in more than a week, limiting the appeal of commodities as an investment.

“Worry about the U.S. auto industry and what that means for the economy as a whole has the dollar on a run and oil falling lower,” said John Kilduff, senior vice president of energy at MF Global Inc. in New York. “The bailout of the auto industry roiled the markets late last year and will continue to do so.”

Crude oil for May delivery fell $3.97 to $48.41 a barrel at 2:53 p.m. on the New York Mercantile Exchange, the lowest settlement since March 18. It was the biggest decline since March 2. Prices are up 8.5 percent this year.

Gasoline and heating oil followed crude oil lower. Gasoline futures for April delivery fell 10.8 cents, or 7.3 percent, to settle at $1.3799 a gallon in New York, the lowest since March 18. It was the biggest decline for the motor fuel since Feb. 17. more...