Oil surges $121 a barrel

Published: September 23, 2008

NEW YORK (AFP) - Crude oil prices skyrocketed Monday by 16.37 dollars, the biggest one-day dollar gain on record, lifted by a declining dollar amid a proposed US financial sector bailout.
New Yorkâ€™s main contract, light sweet crude for October delivery, raced 16.37 dollars a barrel higher to close at 120.92 dollars.
Earlier it had soared past the 110-dollar mark for the first time since Aug 29. The contract expired at the close of trade.
According to analysts, the 700-billion-dollar US bailout, which requires approval by Congress, has eased fears that the worldâ€™s largest economy was on the brink of collapse.
Mondayâ€™s rally far exceeded the prior one-day dollar gain of 10.75 dollars on June 6.
The US bailout plan also prompted a decline in the dollar, which was trading around 1.47 dollars against the euro Monday. A weaker dollar makes dollar-priced oil more attractive to buyers using stronger currencies.
Oil and other commodities traditionally are seen as safer investments when the US currency weakens.

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