Just when you thought you could relax at the pump, oil prices shot up more than 15 percent today – the biggest one-day gain on record according to Reuters. Prices went up $16.37 to $120.92 per barrel, a 15.7 percent increase.
What caused the increase? Reuters says that shaky markets and government measures to rescue the financial system caused gains across the markets last week with oil up 7 percent, its biggest gain within three-days in a decade.
Hurricane Ike also supported the increase in the price oil after causing nearly 90 percent of the U.S. oil sector to remain shut along with seven oil refineries.
“The key driver continues to be the U.S. rescue package, which has changed the sentiment in the oil market,” Bank of Ireland analyst Paul Harris said.