Oil prices fell this evening, mainly due to traders' taking profits one day after New York crude soared more than $16 a barrel in a record daily jump.
This evening, US crude showed a loss of $4 at $105.37 a barrel. Brent North Sea crude dived $3.85 to $102.19, having jumped $6.43 on Monday.
The massive price gain on Monday was driven partly by hopes that a huge US bail-out plan for the banking system would also bolster the global economy and thus maintain strong demand for energy. The rally was also driven by technical factors because the contract for New York oil deliverable in October had expired on Monday.
But traders said concerns about the US plan were growing. This came as Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson told the US Congress that passage of the rescue plan was essential and it needed approval quickly to avoid a global financial crisis.
