Oil Near $120 Per Barrel In Fresh Price Spike

September 23, 2008 6:50 a.m. EST

New York, NY (AHN) - Oil prices reached a new high closing at $119.37 a barrel in the biggest one day price spike of $25 on Monday, over financial fears.

Those fears included the massive $700 billion financial bail-out plan in the United States, a weak dollar and an expiring crude oil contract that pushed the October price higher.

Traders also fear violence in some oil-producing countries, particularly in Nigeria, would jack up prices.

London's Brent crude peaked at $116.75 a barrel after Monday's close.

David Moore, a commodities strategist at the Commonwealth Bank of America cited concerns over supply disruptions in Nigeria.

Abdalla Salem el-Badri, secretary general of the Organization of Petroleum Exporting Countries said the oil rally was a result of demand being matched by current supply. OPEC has refused to increase oil production output and said they want to maintain oil prices at $100 per barrel.