By Ben Sharples Nov. 27 (Bloomberg) -- Crude oil fell to its lowest level in six weeks in New York as concern over losses stemming from Dubai World’s attempt to reschedule its debt led to gains in the dollar and declines in equities. Oil also dropped on signs that the pace of fuel demand recovery in the U.S., the biggest energy-consuming nation, was slowing. The dollar strengthened against the euro as investors sought the safety of assets perceived as lower risk. U.S. distillate stockpiles, which include heating oil and diesel, were 26 percent above the five-year average, the Energy Department said this week. “There seems to be anxiety across the markets, commodities and equities, stemming from concerns over Dubai’s possible default on debt,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. “The markets are weighing up the implications of that on the global economic recovery.” Crude oil for January delivery dropped $3.44, or 4.4 percent, to $74.52 a barrel on the New York Mercantile Exchange at 6:11 p.m. Sydney time. Crude last traded below that level on Oct. 14, when it sank to an intraday low of $74.40 a barrel. Futures, which have gained 67 percent this year, are poised for a 2.8 percent decline this week. There was no floor trading in New York yesterday because of the U.S. Thanksgiving holiday. Electronic trading ended at 1:15 p.m. in New York with no settlement of prices. Electronic trading and today’s shortened floor session will count toward the settlement. All trading will stop at 1:45 p.m. in New York. Stronger Dollar The dollar rose against most of the other main currencies, except the Japanese yen, after Dubai World, the government investment company burdened by $59 billion of liabilities, roiled markets around the world by seeking to delay repayment on much of its debt. HSBC Holdings Plc and Standard Chartered Plc led declines in bank shares in Asia today, and European stocks fell the most in seven months yesterday. The U.S. currency traded at $1.4920 per euro at 6:15 p.m. in Sydney, from $1.5019 yesterday. A stronger dollar reduces the investment appeal of commodities. “If we see sentiment knocked around by this Dubai development, then I think that could have fairly significant implications for oil,” Hassall said. “If we see equity markets come off tonight I think we may see oil follow.” The MSCI Asia Pacific Index sank 3 percent to 114.08 at 4:14 p.m. in Tokyo, the biggest drop since Aug. 17. Inventories Rise Crude oil stockpiles rose 1.02 million barrels last week to 337.8 million barrels, the Energy Department report showed. Distillate supplies fell 0.3 percent to 166.9 million barrels, according to the data. U.S. gasoline inventories increased 0.5 percent to 210.1 million barrels last week as imports rose and refiners boosted output, the report showed. “We are still oversupplied if you look at the inventory data,” Hassall said. Brent crude oil for January delivery fell as much as $1.39, or 1.8 percent, to $75.60 a barrel on the London-based ICE Futures Europe exchange. It was at $75.87 at 6:28 p.m. Sydney time. Yesterday, the contract fell $1.45, or 1.9 percent, to settle at $76.99. To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net

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