UPDATE

UPDATE AT 9 PM IST ON OCTOBER 6

Crude oil fell for a fourth day as the credit crisis deepened in

Europe, adding to concern that global economic growth will slow

and reduce demand for fuels.

Oil dipped as low as $88.89 a barrel after European leaders

pledged to bail out troubled banks and protect depositors. OPEC

President Chakib Khelil said today the price slide will continue

next year, and Saudi Aramco, the world's largest state oil company,

cut its selling prices for exports to Asia and the U.S.

Crude oil for November delivery fell $3.65, or 3.9 percent, to

$90.23 a barrel as of 10:16 a.m. on the New York Mercantile

Exchange. Earlier, it touched the lowest since Feb. 8. Futures have

fallen 38 percent from the record $147.27 reached July 11.

New York oil prices declined 12 percent last week as reports showed

U.S. fuel demand the previous four weeks was the lowest in almost

seven years and manufacturing shrank in September at the fastest

pace since the last recession in 2001. The Labor Department reported

a bigger-than-expected 159,000 drop in payrolls in September last week.

Dollar Gains

The dollar rose to the highest since August 2007 against a basket

of currencies, reducing the investment appeal of dollar- denominated

commodities. The euro fell as low as $1.353, from $1.3772 Oct. 3, after

Germany said it will guarantee personal bank deposits, in a bid to

stabilize the nation's banking system.
The Dow Jones Industrial Average fell below 10,000 today for the first time since October 2004. It was down 349.57, or 3.4 percent, to 9,975.81 at 10:16 a.m. in New York.