WTI drops almost 10 percent on session

Crude oil prices fell sharply Monday after the US House of Representatives failed to pass a proposal to bail out the US financial sector and on a stronger dollar after three European banks were bailed out by governments and private banks there.

West Texas Intermediate crude for November delivery dropped $10.63 to $96.26 per barrel at the close of floor trade on the New York Mercantile Exchange, a decline of nearly 10 percent on the session after falling as low as $95.04 per barrel earlier.

November contracts for Brent crude was down $7.37 to $96.17 per barrel on the ICE Futures Europe exchange in London.

The declines came after Deutsche Bank (FWB: DB) cut its predictions for oil prices in New York in 2009 to $92.50 per barrel, citing declining demand due to slowing economic growth because of the credit crisis.

Nymex October gasoline was down 29 cents to $2.38 per gallon while November heating oil dropped 24 cents to $2.75 per gallon.