Liquidity Shock

SINGAPORE, September 23, 2008 (AFP) – Crude oil traded mixed in Asia on Tuesday after the benchmark New York futures contract soared more than 16 dollars for its biggest one-day gain ever.

The massive price surge stemmed partly from hopes that a US plan to buy tainted mortgage-related assets will save the global economy from collapse, dealers aid.

New York’s main contract, light sweet crude for November delivery, eased 19 cents to 109.18 dollars a barrel.

The contract for October delivery had soared 16.37 dollars a barrel to 120.92 dollars at the close of floor trading on the New York Mercantile Exchange on Monday.

The rally was party driven by technical factors linked to the October contract’s expiration at the close of trade, analysts said.

Monday’s surge exceeded the last record one-day rise of 10.75 dollars on June 6.

Brent North Sea crude for November delivery was five cents higher at 106.09 dollars a barrel after rising 6.43 dollars a barrel to settle at 106.04 dollars on Monday in London. Oil prices had fallen heavily from record levels above 147 dollars in early July, on worries the global economy is slowing and causing a dent in energy demand.