Oil falls as demand concerns outweigh bailout
NEW YORK (Reuters) - Oil fell on Friday, dragged down as demand concerns outweighed optimism after a rescue bill for the U.S. financial sector was signed into law.
The House passed the landmark $700 billion bailout bill, sending it to President George W. Bush, who quickly signed it into law.
U.S. crude settled at $93.88 a barrel, down 9 cents, after dropping $4.56 on Thursday on concerns about slumping demand. London Brent crude settled at $90.25 a barrel, down 31 cents.
High fuel prices and the wider economic crisis has hurt consumption in top consumer the United States, knocking crude off a record peak over $147 a barrel struck in July.
Analysts said that while the bailout could help stem a more serious downturn in the economy, it was likely to do little to bolster flagging oil demand.
"We know that big picture demand is the big question at this point," said Tom Bentz, analyst at BNP Paribas Commodity Futures Inc in New York.
"The crude market is saying, how is this really going to change demand at this point? I don't know if you can say that directly just from this bill passing."
U.S. stocks on Friday afternoon fell from earlier highs on profit-taking following the vote. Stocks gained earlier as Wells Fargo's proposed takeover of troubled U.S. bank Wachovia Corp WB.N lifted financial shares, while traders awaited news of the rescue package vote.
Earlier, oil dipped after data showed U.S. employers cut payrolls in September at the steepest rate in 5-1/2 years, slashing an unexpectedly large 159,000 jobs as employment contracted for a ninth straight month.
(Reporting by Matthew Robinson in New York, Maryelle Demongeot in Singapore, Chikafumi Hodo in Tokyo and Ikuko Kao and Alex Lawler in London; Editing by David Gregorio)
