Crude oil falls over europe’s debt worries

SINGAPORE: Oil fell from a three-day high in New York amid concern that Europe’s debt crisis will threaten the region’s economic recovery and curb demand.

Futures slid as much as 1.2%, after posting their biggest gain in almost a month on Tuesday, as European Union finance ministers struggled to break a deadlock on a second rescue plan for the Greek economy. US crude stockpiles fell by 3.01 million barrels last week, the industry-funded American Petroleum Institute said on Tuesday.

A Bloomberg survey indicated government data on Wednesday may show a decline of 1.8 million barrels.

"The debt situation in Greece is coming into focus again so people are hesitant to buy," said Gerrit Zambo, a trader at Bayerische Landesbank in Munich. "The supply situation everywhere is quite relaxed, especially in the US."

Crude for July delivery declined as much as $1.17 to $98.20 a barrel in electronic trading on the New York Mercantile Exchange and was at $98.71 at 1:15 p.m. London time. The contract gained 2.1% on Tuesday, the biggest increase since May 18. Prices were 28% higher in the past year.