Crude Oil Declines as Rescue Plan Stalled in Congress

Crude prices moved lower Friday, after negotiation over the U.S. government's financial rescue plan stalled in Congress.

The setback of the 700 billion U.S. dollars bailout plan unnerved investors. A group of House Republicans refused to support the proposed rescue plan by Treasury Secretary Henry Paulson Thursday, not long after key lawmakers of both parties declared they'd reached fundamental agreement on the bailout plan.

Investors had hoped the plan could prevent the nation's economy from further slowing down, which resulted in shrinking fuel consumption in the United States, the world's largest crude consumer. U.S. fuel demand over the past four weeks was down 5.3 percent form last year, a government report showed this week.

Meanwhile, investors also worried that investment banks might liquidate their futures position, if the rescue plan remained uncertain by next Monday.

Light, sweet crude for November delivery fell 1.13 U.S. dollars to settle at 106.89 dollars a barrel on the New York Mercantile Exchange.