Oil prices fell for the second day as investors expressed little confidence in the Congress’ $700 billion-dollar bailout plan.

 

The decline came a day after the Senate overwhelmingly approved the bitterly contested rescue package. The bill now goes to the House of Representatives for an expected vote Friday. On Monday, House lawmakers stunned investors by rejecting the bailout plan, although Senators added $100 billion in tax breaks and other sweeteners in a bid to win over enough dissenting House votes.

Even if the plan wins approval, oil market traders are skeptical that it will steady the teetering US economy and reverse flagging demand for energy by the world’s largest consumer.

“I think the oil market believes that no size of a rescue plan is going to be enough to stave off a recession,” said Addison Armstrong, director of market research at Tradition Energy in Stamford, Connecticut.

Light, sweet crude for November delivery fell $3.73 to $94.80 a barrel on the New York Mercantile Exchange. Prices earlier jumped as high as $100.37, but eased back later as traders digested the details of the revised bailout package.

Oil prices have fallen about $15, or 13%, in the past month as investor concerns about waning global energy consumption outweigh threats to supplies caused by Gulf Coast hurricanes and militant attacks in Nigeria.

 

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