Associated Press
LONDON — Oil prices fell below $105 a barrel today on investor concern that faltering negotiations in Washington might sabotage a bailout plan to stabilize the U.S. financial system, which could curb global growth and undermine crude demand.
Light, sweet crude for November delivery was down $3.37 to $104.65 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. The contract rose overnight $2.29 to settle at $108.02.
"The bailout is a real focus of the market because it’s seen as being quite important to the direction of the economy," said David Moore, a commodity strategist at Commonwealth Bank of Australia in Sydney.
"To the extent that the latest news suggests it’s not going to be passed as quickly as markets had thought, that would have an impact on the oil price," he said.
