Oil prices plunged more than 10 U.S. dollars Monday as the veto of the bailout plan exacerbated worries that economic downturn would further cut oil demand.
Light, sweet crude for November delivery slid 10.52 dollars to settle at 96.37 dollars a barrel on the New York Mercantile Exchange. Futures fell as low as 95.04 dollars a barrel earlier.
The U.S. Congress rejected the 700-billion-dollar financial rescue plan Monday afternoon, which sent the Dow Jones tumbling 705 points shortly after the break of the news. However, many analysts believed that no matter which way the Congress voted on the plan, oil prices will go down because the severe economic downturn in the United States and worldwide will further cut energy demand from both consumers and businesses.
Meanwhile, a rising dollar also contributed to the falling of the oil prices. It was actually the euro losing ground against the dollar as the economy outlook remained gloomy in the euro zone with more banks got into trouble.
In London, Brent crude for November delivery fell 9.86 dollars to 93.68 dollars a barrel on the ICE Futures Exchange.
Source: Xinhua
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