Crude Oil Drops To Near $103 On Global Financial Slowdown Worries

Singapore (AHN) - Prices of crude oil dropped to near $103 a barrel in Asia on Monday on fears of global economic slowdown despite the planned historic $700 billion bailout of the Bush administration to save the troubled Wall Street.

Trading on the New York Mercantile Exchange in Singapore saw the light, sweet crude for November delivery slid by $3.73 to close at $103.16 a barrel.

Energy analysts say that the U.S. bailout package reduces the chance of a complete financial collapse, but that worries on the demand side continue to weigh on oil prices.

On Sunday, U.S. congressional leaders and top negotiators of the Bush administration reached a tentative deal on the bailout plan in an unprecedented rescue plan of the ailing financial markets.

The bailout gives the Treasure Department broad powers to buy mortgage-related assets of financial firms facing cash problems at a devalued price using hundreds of billions of taxpayer's money.

Congress wants some control on how the White House would spend the fund.