Oil declined for a second day in New York, extending its biggest drop in two months, on concern that a U.S. economic slowdown may curb demand in the world’s largest consumer of crude.

Futures fell as much as 1.3 percent, deepening yesterday’s 2.4 percent loss. Crude tumbled almost $4 in three minutes yesterday before the expiry of October options contracts. The Federal Reserve Bank of New York’s general economic index, known as the Empire State Index, fell to a three-year low. Saudi Arabia is taking action to reduce oil prices, a Persian Gulf official with knowledge of the matter said today.

Oil for October delivery fell as much as $1.23 to $95.39 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude for November settlement fell 30 cents to $113.49 on the London-based ICE Futures Europe exchange. It dropped 2.5 percent yesterday.