Oil prices slumped 2 percent on Monday, falling for a fourth day as traders feared efforts to contain an intensifying credit crisis would fail to stave off a deeper decline in oil demand.

Amid a relatively quiet weekend in the US financial sector after Friday's passage of a landmark $700 billion bailout bill, in Europe officials scrambled to save three banks while differing on whether to pursue a common bank bailout fund.

US light crude for November delivery fell $1.91 a barrel or 2 percent to $91.97 a barrel by 0437 GMT, having slipped just 9 cents on Friday.

Prices are treading near their seven-month low of $90.51 a barrel touched on Sept. 16 after slumping 12 percent last week, its biggest such loss in almost four years.

London Brent crude dropped $1.90 to $88.35 a barrel.

"There's a growing perception that the bailout package will put a further drag on US growth, and that really this is just a band-aid initiative to bail out Wall Street," said Mark Pervan, senior commodities analyst at ANZ.

The US dollar's rise to a 13-month high versus the euro added to pressure on beleaguered commodities, which slumped more than 10 percent last week in their biggest-ever weekly loss. Asian stocks tumbled 4 percent on Monday. - Reuters