falling the Oil for the fourth consecutive day.

Oil fell for a fourth day as speculation that China's oil demand may fall passed signs that U.S. consumption is increasing.

Futures dropped as much as 1.4 percent after Chinese Premier Wen Jiabao said the government is preparing measures to combat inflation in the world's largest consumer of energy. Prices also fell on concerns the crisis of debt in Europe is worsening as ministers consider a rescue package for Irish banks. Crude inventories fell most U.S. since September 2008 and rising gasoline demand, reports showed yesterday.

"The risk is being taken at the table through the entire complex products as the dollar gets stronger," said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt. "In an environment of foundations such as the sharp drop in crude stocks do not matter."

Crude for December delivery fell to $ 1.16 to $ 81.18 a barrel in electronic trading on the New York Mercantile Exchange. It was at $ 81.98 at 12:50 hours London time. Brent crude oil for January settlement traded at $ 84.48, down 25 cents, on the ICE Futures Europe exchange in London. Yesterday the New York contract fell $ 2.52 to $ 82.34, the lowest since Oct. 29, while Brent lost $ 2.03 to $ 84.73.

Oil fell as Wen's comments, broadcast on state television yesterday, fueled speculation the government may raise interest rates to dampen economic growth. Yesterday the Bank of Korea increased borrowing costs after inflation rose last central bank's ceiling.

Crisis in Europe

European finance ministers began work on possible assistance for banks in debt in Ireland, without a rescue package immediately. The country's crisis is stoking concerns that Europe's problems of debt are spreading, weakening of the euro against the dollar and reduce investor demand for commodities denominated in U.S. currency.

The dollar rose 1 percent to $ 1.3448 against the euro yesterday, the highest since Sept. 28. It was at $ 1.3483 against the euro at 12:50 London time.

Crude inventories fell 7.7 million barrels last week, the American Petroleum Institute said yesterday. An Energy Department report today will probably show that supplies were unchanged. estimates of oil supply of the two organizations have moved in the same direction in seven of the last eight weeks.

"We finally have some good news on the central front and everything else is weakening," said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. "Part of this seems to be concern that China may tighten policy. You have what markets perceive a greater likelihood of a further loss of global confidence in the European debt problems rejuvenation."

The demand for holidays

U.S. Travel during the weekend of Thanksgiving increase by 11 percent over last year in improving economic conditions, AAA, the nation's largest motoring organization said yesterday. The consumption of gasoline at the pump climbed for the first time in four weeks, MasterCard Inc. said in its report SpendingPulse.

U.S. inventories gasoline fell 1.65 million barrels to 214.6 million weeks ago, the report showed the API. Supplies likely fell by 750,000 barrels, according to the survey report by the Department of Energy.