* Market awaits U.S. House of Representatives bailout vote
* Global economic turmoil stirs demand concern
* Oil extends falls by $1 after more than $4 loss on
Thursday
(Updates prices, adds Japan's Nikkei closing at 3 year-low)
By Maryelle Demongeot
SINGAPORE, Oct 3 (Reuters) - Oil fell nearly a dollar to
near $93 a barrel on Friday, its third consecutive day of
losses, on scepticism that a U.S. bailout package would be
enough to prevent further oil demand falls.
The House of Representatives could vote as early as Friday
on the revised $700 billion financial industry rescue bill,
which was approved by the U.S. Senate late on Wednesday but has
failed to lift markets so far.
U.S. light crude for November delivery <CLc1> fell 77 cents
to $93.20 a barrel by 0651 GMT, up from an earlier low of
$92.81.
It had slid by a hefty $4.56 on Thursday on demand worries
and a stronger dollar.
London Brent crude <LCOc1> was down 54 cents to $90.02 a
barrel, after having fallen below $90 earlier for the first
time since Sept. 17.
"Traders are watching the outcome of the U.S. House of
Representatives vote on the bail-out package," Jonathan
Kornafel, director Asia, Hudson Capital Energy, said in a note
on Friday.
"Unfortunately, while a "no" vote may result in a financial
meltdown, a "yes" vote may cause nothing more than increased
volatility across all markets," he added.
Asian stocks fell on Friday after U.S. stocks lost 4
percent on Thursday.
Japan's Nikkei average fell 1.9 percent to a three-year
closing low on Friday for its worst weekly drop in more than a
year. []
The growing financial crisis has added to concerns about
oil demand, which has slumped in industrialised countries like
the United States this year, sending crude prices crashing from
record highs over $147 a barrel hit in July.
Total U.S. oil product demand over the past four weeks is
down 7.1 percent from a year earlier, the U.S Energy
Information Administration's weekly data showed.
[]
Additional pressure on crude prices came as investors --
who had flocked to crude and other commodities earlier this
year as a hedge against the weak dollar and inflation --
unwound positions.
"In the current situation when the market is facing
tightness in the money market, investors don't want to take
risks in oil and other commodities markets," said Shuji Sugata,
manager at Mitsubishi Corp Futures and Securities Ltd in Tokyo.
The dollar hovered near a one-year peak against a basket of
major currencies on Friday as banks and financial institutions
have scrambled to buy the U.S. currency on the open market
after being locked out of frozen money markets. []
U.S. government data -- showing rising inventories of
crude, gasoline and natural gas as oil infrastructure recovered
from Hurricane Ike -- also weighed on crude prices. []
(Additional reporting by Chikafumi Hodo in Tokyo; Editing by
Michael Urquhart)
