Oil falls most in nearly three weeks as traders shun risk

Oil erased gains from the past two sessions as earnings from multiple U.S. companies disappointed, potentially signaling a dour short-term outlook for energy traders.

West Texas Intermediate settled at US$80.13 a barrel, shedding almost 2 per cent, the biggest drop since the first week of January. Oil succumbed to broader market pressure after disappointing results from a handful of economic-activity bellwethers, such as Union Pacific Corp and 3M Co., led investors to shun risk. 

These results have tempered optimism for the economy in the near-term, said Ed Moya, senior market analyst at OANDA. “That has oil prices giving up some of its recent gains.”