Oil Spikes $25 A Barrel On Anxiety Over U.S. Bailout

NEW YORK (AP) - Oil prices spiked more than $25 a barrel Monday
- the biggest one-day price jump ever - as anxiety over the
government's $700 billion bailout plan, a weak dollar and an
expiring crude contract ignited a dramatic rally.
Light, sweet crude for October delivery jumped as much as $25.45
to $130 a barrel on the New York Mercantile Exchange before falling
back to settle at $120.92, up $16.37. The contract expired at the
end of the day, adding to the volatility as traders rushed to cover
positions; the October price began accelerating sharply in the last
hour of regular trading, a common occurrence when a contract is
about to go off the board.
Still, the rally, which shattered crude's previous one-day price
jump of $10.75, set June 6, showed the intensity of emotion in the
market.
The November contract, scheduled to become the front-month
contract at the end of Monday's session, was trading at $108.69, up
$5.94.
Crude has gained about $30 in a dramatic four-day rally that has
at least temporarily halted oil's steep two-month slide below $100.
At this rate, crude is within striking distance of its all-time
record of $147.27, reached in July.
In other trading, gold prices shot up more than $40 and other
safe-haven commodities also rallied, underscoring investors'
uncertainly about the direction of the economy and their fear of
more turmoil ahead.
"We're off to the races again," said Jim Ritterbusch,
president of energy consultancy Ritterbusch and Associates in
Galena, Ill. "There's a renewed scramble for commodities because
of a general weakness in the dollar."
The Nymex temporarily halted electronic crude oil trading after
prices breached the $10 daily trading limit. Trading resumed
seconds later after the daily limit was increased.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Tim on Sep 24, 2008 at 04:40 AM
    You can bet my next vote will be democrat, how long can our nation take this bunch of right wingers?
  • by me Location: ky on Sep 23, 2008 at 08:12 AM
    useless war? I notice there have been no more buildings blown up in our country, look around . and I am sooo tired of the republicians being blamed Just remember there is a demorcratic congress. someone is getting rich off us, and its about time we find out who, oil companies, refineries or transportation of the gas or stores selling it. it shouldnt be that hard to trail the price to find out so stop complaining. terri, jessica an nick
  • by Nick on Sep 23, 2008 at 03:23 AM
    blame your friendly negighborhood Republican leaders...thats the way they like it.
  • by Jessica Location: Winchester on Sep 22, 2008 at 08:31 PM
    How is it our government has over 40 years worth of gasoline stocked up, but yet citizens have to pay an excessive amount of money for gasoline? In 40 years, who knows what will happen by that time? There might not be any fuel related transportation by that time. With the inflation of gas prices, groceries, etc, when is the government going to pay citizens for working? Seems like citizens are just getting paid for getting back and fourth to work, and buying groceries. Why does Americans just sit back and allow this to happen? We (Americans)do this to ourselves. We choose our "Leader", and time after time, we get shafted, and you would think after making so many wrong choices we would learn from it, but nothing has changed yet. Maybe we all should look outside the box and look at the "real picture". We might be surprised on what we see.
  • by Anonymous Location: Knox co on Sep 22, 2008 at 06:33 PM
    Looks like more money for the RICH oil Man.
  • by Terri Location: east KY on Sep 22, 2008 at 12:15 PM
    Well our fearless leader wants Congress to trust him on this bill, guess what happened last time they trusted him and the republicans------we went to a useless war that has cost us BILLIONS and put this nation in the financial condition it's in now---don't blame me I voted democrat.

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