Oil prices spiked more than US$25 a barrel this morning - the biggest one-day price jump ever - as anxiety over the American government's US$700 billion bailout plan, a weak dollar and an expiring crude contract ignited a dramatic rally.
In New Zealand, petrol at the pumps dropped last week to $1.95 a litre for 91 unleaded, but this price could come under pressure as oil companies here absorb last night's spike.
Light, sweet crude for October delivery jumped as much as US$25.45 to US$130 a barrel on the New York Mercantile Exchange before falling back to settle at US$120.92, up US$16.37.
The rally, which shattered crude's previous one-day price jump of US$10.75, set June 6, showed the intensity of emotion in the market.
Crude has gained about US$30 in a dramatic four-day rally that has at least temporarily halted oil's steep two-month slide below US$100.
At this rate, crude is within striking distance of its all-time record of US$147.27, reached in July.
Source: NZ Herald
Comment: Now why am I not surprised? Watch what is going on in the world folks, it may crumble before your eyes!