Oil Drops $10 More To Below $100 A Barrel

September 30, 2008 6:37 a.m. EST

New York (AHN) - Oil prices were not spared by the Wall Street financial turmoil when oil contract price lost $10 more on Monday after news spread of the U.S. House of Representative rejecting the Bush administration's $700 billion financial bailout package.

Fears of global economic slowdown and a strong dollar pushed oil prices down even as European stocks also stumbled.

November delivery for light, sweet crude oil dropped $10.52, or 8.9 percent, to $96.37 a barrel on the New York Mercantile Exchange. The biggest drop in dollar terms was $10.56 on Jan. 17, 1991.

The sharp decline in fuel prices came exactly a week after oil jumped $16.37 in a single biggest gain ever.

Meanwhile, many analysts see the failure of Congress to act on the emergency $700 billion bailout package legislation as heading the economy into a painful recession.

Terry Connelly, dean of Golden Gate University's Ageno School of Business described the rejection as "an economic 9/11."