Crude futures closed with a loss of more than $10 per barrel Monday, ending the session at a nearly two-week low with the rejection of the U.S. government’s bailout plan to stem the banking crisis feeding concerns about slowing global economic growth and weaker demand for oil.
Crude for November delivery dropped $10.52, or 9.8%, to close at $96.37 a barrel on Nymex. It was at its weakest closing level since Sept. 16.
In dollar terms, the futures marked their second-largest one-day drop on the New York Mercantile Exchange. The largest was set in January 1991 at a daily loss of $10.56, according to FactSet Research.
The failure of the bailout plan’s passage “will drop the oil price some more … because oil traders perceive this will hurt the economy — and as a result reduce oil demand,” said Charles Perry, president of Perry Management, an energy-consulting firm.
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