Oil traded near its lowest in almost four months in New York, paring earlier gains, as European equities declined and the euro weakened against the dollar amid concern that the region’s debt crisis is worsening. Futures were little changed as stock markets fell worldwide to a three-month low, the euro weakened and European government default risk climbed to a record. Oil earlier rose as much as 1 percent after the International Energy Agency raised its oil demand forecast. “The brief rebound earlier was unlikely to last because of concern that Europe’s debt crisis is worsening,” said Carsten Fritsch, a Commerzbank AG analyst in Frankfurt. “Weaker-than- expected data from U.S. manufacturing yesterday is also not good for the demand outlook in the world’s biggest oil consumer.” Crude for July delivery was down 18 cents at $94.63 a barrel in electronic trading on the New York Mercantile Exchange at 11:09 a.m. London time, after rising as high as $95.75. The contract yesterday fell $4.56 to $94.81, the lowest close since Feb. 22. Brent oil for August delivery rose 66 cents, or 0.6 percent, to $113.67 a barrel on the London-based ICE Futures Europe exchange. It fell $6.34 yesterday to $113.01. To contact the reporter on this story: Ayesha Daya in Abu Dhabi at adaya1@bloomberg.net. To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net.

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