Crude oil has jumped by more than $16 a barrel, the biggest one-day gain on record, due to continuing volatility in the international markets.
That means a barrel of oil for October delivery now costs $121. That's some way of the peak of $146/barrel in July, but the price rise has triggered fears of further increases in the cost of petrol and diesel for UK consumers.
Earlier this week it looked as if retail fuel prices in the UK would fall as oil prices continued to slide, bottoming at $91 a barrel.
Analysts blame the price spike on investors switching to oil as a 'safe haven' as global stock markets continue to fall.