Top > Business > 2005 > September > 2005-09-20

Oil prices surge on news of new storm

Oil prices soared yesterday in the largest one-day gain ever as fears mounted that a developing tropical storm could damage oil operations in the Gulf of Mexico and Texas.U.S. benchmark crude for October delivery gained $4.39 a barrel on the New York Mercantile Exchange to close at $67.39.

That was the largest one-day dollar gain since oil started trading on the exchange in 1983, according to the Energy Department. The oil price closed at a record $69.81 on Aug. 30.

The spike came as gasoline prices, which surged after Katrina, continued to fall. The national average was $2.786 a gallon for regular, down 16.9 cents from a week earlier, according to the Energy Department.