July 14 (Bloomberg) -- Crude oil fell for the first time in four days in New York as the dollar advanced because of plans by the U.S. Treasury to provide direct loans to the nation's largest mortgage financiers.

Oil, little changed earlier, dropped after the dollar rose from a two-month low against the euro as Treasury Secretary Henry Paulson said he will seek approval to buy stakes in and lend to Freddie Mac and Fannie Mae to help stem the slump in the housing market.

Crude oil for August delivery fell as much $1.01, or 0.7 percent, to $144.07 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was at $144.33 at 8:35 a.m. in Sydney.

The contract jumped to a record $147.27 on July 11 after the dollar fell and the Jerusalem Post said Israeli war planes practised over Iraq for an attack on Iran's nuclear research facility. Israel denied the newspaper's report and oil settled at $145.08, a gain of 2.4 percent on the day.

The dollar was at $1.5915 per euro in Asian trading today, from $1.5933 in late New York trading July 11. It earlier reached $1.5971, the weakest since April, before Paulson's announcement. The dollar touched the all-time low of $1.6019 on April 22.

Brent crude oil for August settlement fell 55 cents, or 0.4 percent, to $143.94 a barrel on London's ICE Futures Europe exchange. The contract, which expires July 16, reached a record $147.50 on July 11.

The more widely held September contract fell 63 cents, or 0.4 percent, to $144.94 a barrel.

To contact the reporter on this story: Gavin Evans in Wellington at gavinevans@bloomberg.net

Last Updated: July 13, 2008 18:55 EDT