Oil prices at 99.76 in Asian trade

SINGAPORE, October 2, 2008 (AFP) – World oil prices were up more than one dollar in Asian trade on Thursday shortly after the US Senate approved a revised government proposal to bail out the US financial sector.

New York’s main contract, light sweet crude for November delivery, was 1.23 dollars higher at 99.76 dollars a barrel from 98.53 dollars at the close of floor trading Wednesday on the New York Mercantile Exchange.

Brent North Sea crude for November delivery gained 1.70 dollars a barrel to 97.03 from 95.33 dollars on Wednesday in London.

After the Senate’s approval, the bill to purchase up to 700 billion US dollars worth of tainted mortgage-related assets at the root of a global financial crisis must face a vote in the House of Representatives.

Analysts have said collapse of the plan would further heighten worries of an even sharper slowdown in the already-weak US economy, a major buyer of the world’s exports. Oil prices have already dropped sharply from record high levels above 147 dollars in July on worries that demand is shrinking in a US-led global slowdown.