Reply #10: Oil drops below $90 a barrel [View All]

SINGAPORE - Oil prices fell Monday in Asia as concern over the U.S. economy drove down regional stock markets and outweighed concern that OPEC will resist pressure to raise crude production levels.

Oil prices have now retreated more than $10 from a record above $100 a barrel early this year on worries a flagging U.S. economy would dampen fuel demand. Prices had gained Friday on hopes that President George W. Bush's economic stimulus plan would work.

But most stock markets have since reacted pessimistically, uncertain Bush's plan is enough to stave off a severe economic downturn in the world's largest oil consumer. Asian markets plunged Monday, with benchmark indices in Hong Kong and China both dropping more than 5 percent. On Friday in the U.S., the Dow Jones industrials fell 0.5 percent after Bush announced a $145 billion tax relief package.

http://news.yahoo.com/s/ap/oil_prices

The piehole effect worked its magic again.