Oil hovered around $95 a barrel Thursday after Greece's approval of a harsh austerity plan eased concerns of a devastating default, though markets continued to worry about sluggish global appetite for crude. By early afternoon in Europe, benchmark oil for August delivery was down 3 cents to $94.74 a barrel in electronic trading on the New York Mercantile Exchange. Crude gained $1.88 to settle at $94.77 on Wednesday. In London, Brent crude for August delivery was off 32 cents at $112.08 on the ICE Futures exchange. Oil has recovered over the last two days from losses sustained since last Thursday, when the 28-nation International Energy Agency said it would make 60 million barrels of crude from emergency stocks available to help lower prices. It got a boost as Greek lawmakers prepared for and passed financial reforms that were required for the country to receive the next installment of an international aid package. Without that money, the country risks defaulting on its debts. The dollar lost ground to the euro and other major currencies, which was also supportive for crude. As oil is priced in dollars, it tends to rise as the U.s currency falls and makes crude cheaper for investors holding other currencies. Before this week's recovery, crude had dropped from near $115 early last month on concerns about slowing demand from the U.S. and Europe, a factor which still worries some analysts. "In our view, the price gains of recent days are not justified, and given the ample supplies available, we envisage a renewed retreat once market enthusiasm regarding Greece has cooled off," said a report from Commerzbank in Frankfurt. While the Energy Information Administration said U.S. oil supplies dropped more than forecast last week and gasoline supplies also fell unexpectedly, U.S. oil demand fell by 1.7 percent while gasoline demand dropped 0.3 percent on the year. "Over the past four weeks, demand for gasoline still has been slightly lower than a year ago, so there can be no talk yet of demand recovering," Commerzbank said.