Oil spikes $16 in single biggest one-day jump

Mon Sep 22, 2008 4:56pm EDT
By Richard Valdmanis

NEW YORK (Reuters) – Oil prices soared nearly 16 percent to over $120 a barrel on Monday — the biggest one-day gain on record — in a rally sparked by the expiry of the front-month futures contract and weakness in the U.S. dollar.

The gains extend oil’s climb from a low near $90 last week after the United States unveiled a sweeping rescue plan for its battered financial sector, improving the outlook for energy demand in the world’s biggest consumer nation.

U.S. crude for October delivery, which expires on Monday, settled up $16.37, or 15.7 percent, at $120.92 per barrel. The contract for delivery in November, which was much more actively traded, was up only $6.62 at $109.37.

London Brent crude settled up $6.43 at $106.04.