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SINGAPORE: Oil prices edged higher in Asian trade
Thursday as investors worried a stalemate over the US government’s
bailout plan for the ailing financial system will further damage the
economy, dealers said.
In afternoon trade, New York’s
main contract, light sweet crude for November delivery, rose 54
cents to $106.27 a barrel. Brent North Sea crude for November
delivery was 30 cents higher at $102.75.
Dealers said investor fears could
be stoked by a failure of the US Congress to approve the proposed
$700-billion plan to buy tainted mortgage-related assets at the root
of the global financial crisis.
President George W. Bush warned
the “entire US economy is in danger” and tried to pressure
lawmakers who have shown opposition to what is in effect a taxpayer
bailout.
”Without immediate action by
Congress, America could slip into a financial panic,” Bush said in
a rare live televised speech to the nation. “Ultimately, our
country could experience a long and painful recession.”
Congressional approval of the
plan would at least bring some calm to the market, said Tony Nunan,
a Tokyo-based manager with Mitsubishi Corp.’s international
petroleum business.
Oil prices have already fallen
heavily from record levels above $147 in early July on worries the
global economy is slowing and causing a dent in energy demand.
--AFP
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