Oil prices have spiked more than US$25 a barrel - the biggest one-day price jump ever - as anxiety over the government's US$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 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 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 US$10.75, set June 6, showed the intensity of emotion in the market.
AP