Oil Falls for Second Day on Concerns Bailout Won't Help Demand

By Christian Schmollinger and Grant Smith

Oct. 2 (Bloomberg) -- Crude oil fell for a second day on concerns that the financial rescue package approved by the U.S. Senate will not be enough to restore faltering demand.

Oil prices were also pressured as the dollar neared a one- year high against the euro on expectations the U.S. will address credit market troubles faster than Europe. A stronger U.S. currency often reduces the appeal of dollar-priced commodities as an inflation hedge.

Crude oil for November delivery fell as much as $2.03, or 2.1 percent, to $96.50 a barrel time in after-hours electronic trading on the New York Mercantile Exchange. It was at $96.82 a barrel at 8:31 a.m. London time. It earlier rose as much as 1.9 percent to $100.37 a barrel before the vote.

Brent crude oil for November settlement fell as much as $2.09, or 2.2 percent, to $93.24 a barrel, on London's ICE Futures Europe exchange. The contract was at $93.49 a barrel at 8:33 a.m. London time.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.