Oil volatile as traders weigh US bailout rejection (7 p.m.)
Oil prices were volatile Tuesday after plummeting overnight as investors weighed the fallout from U.S. lawmakers’ rejection of a proposed US$700 billion bank bailout aimed at stabilizing the teetering U.S. economy.
By midday in Europe, light, sweet crude for November delivery was up US$1.14 to US$97.51 a barrel in electronic trading on the New York Mercantile Exchange.
Earlier in the session, the contract fell as low as US$93.36 before rebounding to highs near US$98.
On Monday, Nymex oil plunged US$10.52 to settle at US$96.37 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 London, November Brent crude was up US$1.50 to US$95.48 a barrel on the ICE Futures exchange.
In the last seven drays, crude has now fallen almost US$25, or 20 percent. (AP)
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