Oil fell in New York as concern an election in Ireland may hinder the country’s financial bailout boosted the dollar against the euro. Futures extended yesterday’s 0.3 percent decline as the dollar strengthened for a second day against the euro, limiting the appeal of riskier assets such as commodities. Ireland called elections amid disaffection with the country’s bailout plan, raising concern that Europe’s debt crisis will spread, crimping economic growth and reducing fuel demand. “Besides Ireland, people are worried about Spain and Portugal so oil futures are following the focus on the euro zone,” said Victor Shum, a senior principal at consultants Purvin & Gertz Inc. in Singapore. “Any financial trouble would slow down the economic recovery and could impact fuel demand.” Crude for January delivery fell as much as 84 cents, or 1 percent, to $80.90 a barrel in electronic trading on the New York Mercantile Exchange. It was at $81.32 at 3:17 p.m. Singapore time. Earlier, the contract advanced as much as 0.4 percent to $82.10. Futures have gained 2.5 percent this year. The dollar rose as much as 0.7 percent today against the 16-nation euro to $1.3527. The Dollar Index, used by IntercontinentalExchange Inc. to track the greenback against currencies including the yen and Swiss franc, also increased for a second day, gaining as much as 0.4 percent.

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