Oil rises on $700 billion bailout worries

Crude ends the day higher as investors fret that the government's $700 billion economic rescue plan could cripple the dollar.

Oil prices recovered Thursday as investors worried the government's $700 billion economic rescue plan could lead to a weaker dollar, the currency of oil trading.

Crude oil for November delivery settled up $2.29 to $108.02 a barrel on the New York Mercantile Exchange, recovering from a low of $103.22 a barrel as the session opened.

Lawmakers were closer to reaching a bipartisan agreement on a controversial $700 billion plan to prop up the nation's ailing financial businesses on Thursday.

President Bush addressed the nation late Wednesday, saying the country faces severe economic consequences if Congress doesn't approve the bill.

Investors were worried about the plan's effect on U.S. dollar inflation, and about its effect on U.S. debt, according to Rachel Ziemba, energy analyst with RGE Monitor