> GOP Helps America, Oil Plunges to $96; Dems Furious!

http://www.foxnews.com/story/0,2933,430422,00.html

Oil Steady at $96 as Traders Weigh Bailout Flop
Tuesday, September 30, 2008

SINGAPORE ? Oil prices were steady near $96 a barrel Tuesday in Asia
after plummeting overnight as investors weighed the fallout from U.S.
lawmakers' rejection of a proposed $700 billion bank bailout aimed at
stabilizing the teetering U.S. economy.

After an overnight plunge, light, sweet crude for November delivery
was up 33 cents to $96.68 a barrel in electronic trading on the New
York Mercantile Exchange by midday in Singapore.

Oil prices sank $10.52 to settle at $96.36 Monday amid worries that
the financial crisis would drag on global growth and demand for oil.
That was the second-largest drop in dollar terms and the biggest
percentage-wise since 2001.

In the last seven drays, crude has now fallen almost $25, or 20
percent.

"Yesterday's reaction was justified. There's a lot of anxiety in the
market," said Mark Pervan, senior commodity strategist with ANZ Bank
in Melbourne. "I think the market will now likely take a wait-and-see
approach until a new emergency package emerges."

Investors were stunned by the U.S. House of Representatives' rejection
Monday of the bank bailout plan. On Wall Street, the Dow Jones
industrials plunged 777 points, the most ever for a single day.
Officials scrambled to structure a new bailout proposal that would
attract reluctant lawmakers and still soothe the unnerved financial
markets.

"The general trend remains very negative," Pervan said. "Even with a
new package, conditions remain weak for commodities."

Pervan said oil futures will likely fall to $80 a barrel over the next
six months and may reach as low as $60.

Investors are keeping a close eye on the dollar. Investors often buy
crude futures as a hedge against a weakening dollar and inflation, and
sell when the dollar strengthens.

The 15-nation euro was steady Tuesday at $1.4362 while the dollar rose
to 104.46 yen from late New York trading, but down from above 106 yen
on Monday.

In other Nymex trading, heating oil futures were steady at $2.76 a
gallon, while gasoline prices were little changed at $2.39 a gallon.
Natural gas for November delivery was steady at $7.22 per 1,000 cubic
feet.

In London, November Brent crude fell 56 cents to $93.42 a barrel on
the ICE Futures exchange.

.

Quantcast