Oil prices jump

The price of oil has jumped by more than $16 dollars to $120.92 a barrel, in the biggest one-day gain on record.



There is uncertainty about how the U.S. Government\'s plan will work, causing investors to switch to perceived ‘safe havens’ such as oil.



Others believe that the US government\'s bail-out plan will help the economy’s, increasing demand for oil.



Concerns also persist about supply as production in the Gulf of Mexico is still affected by Hurricane Ike.



However, analysts said the US rescue package was key.



The volatility in the price has been exacerbated by the fact that the contract for the supply of oil in October expires on Monday.



Last week oil traded as low as $91 a barrel. It had fallen from the peak of $147 a barrel it reached in July.