Oil drops nearly 10 per cent as House rejects bailout

New York: Oil prices dropped nearly 10 per cent on Monday after the House of Representatives rejected the $700 billion rescue package for the financial sector.

Stocks plunged after lawmakers voted against the bailout and major US and European banks needed emergency deals to stave off collapse, sending investors fleeing to the safety of gold and debt.

US November crude settled down $10.52 to $96.37 a barrel, after touching a session low of $95.04, in the second biggest drop since April 23, 2003. November crude dropped 11.8 per cent last Tuesday following a spike in the expiring October crude contract in the previous session.

London Brent crude traded down $9.56 to settle at $93.98 a barrel.