Oil Surges by a Record $16 to Close Over $120 a Barrel
Oil surged by a record $16.37 Monday, touching $130 a barrel before receding to close above $120, Bloomberg reported.
Light sweet crude futures closed at $120.92 a barrel on the New York Mercantile Exchange, Bloomberg said.
The increases following investor concern about the effects of the federal government’s planned $700 billion financial bailout plan, Bloomberg reported.
As the gains topped $10, they temporarily shut trading on the New York Mercantile Exchange, as futures broke the previous single-day record of $10.75 set on June 6, the Associated Press reported.
Oil closed last Tuesday at a seven-month low $91.15, and closed last week at $104.55 a barrel.
The dollar declined Monday on concern that the Treasury Department’s $700 billion plan to bail out ailing financial institutions will widen the U.S. deficit, Bloomberg said.
