Oil slipped from a three-month high to trade near $40 a barrel in New York, paring a fifth consecutive weekly gain.

Oil traded near the lowest level in more than six years yesterday as an unexpected rise in US crude stockpiles exacerbated a global glut.

Oil fell for a third day after government data showed US inventories rose to the highest level in more than five months and on expectations that the Federal Reserve will not take new action to bolster the economy.