Crude oil fell in New York, poised for its biggest weekly decline in four, on concern that the pace of fuel demand recovery may falter amid a weaker global economy.

Oil gave up some of yesterday’s 1.8 percent gain as Japanese stocks fell following an unexpected drop in industrial production and an increase in the unemployment rate. Crude is heading for a 1.1 percent decline for the week, its biggest slide since the week ended July 2.

Crude oil for September delivery fell as much as 26 cents, or 0.3 percent, to $78.10 a barrel in electronic trading on the New York Mercantile Exchange. It was at $78.14 at 9:16 a.m. Singapore time. Yesterday, the contract gained $1.37 to settle at $78.36. Prices have risen 16.8 percent in the past year and 3.4 percent this month.

Japanese factory output dropped 1.5 percent in June from May, the Trade Ministry said today. The median estimate of 26 economists surveyed by Bloomberg News was for a 0.2 percent increase. The jobless rate rose to 5.3 percent, the highest level since November, the statistics bureau said.

Crude oil gained for the first time in a week yesterday as the dollar fell to a 12-week low against the euro amid confidence Europe’s economy is improving. Prices also rose as the number of Americans filing first-time claims for unemployment insurance fell.

Brent crude for September settlement dropped as much as 26 cents, or 0.3 percent, to $77.33 a barrel on the London-based ICE Futures Europe exchange, and was at $77.35 at 9:15 a.m. Singapore time. Yesterday, the contract rose $1.53, or 2 percent, to $77.59.