Oil advanced above $100 and stock markets surged worldwide after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke said they're putting together plans to halt the credit-market seizure. Output disruptions from rebel attacks in Nigeria and hurricane shutdowns in the U.S. have raised concern that oil supplies are constrained.
Crude for October delivery gained as much as $2.88, or 2.9 percent, $100.76 a barrel on the New York Mercantile Exchange. It was at $100.26 at 12:27 p.m. London time.
Oil, which fell more than $10 a barrel earlier this week as Lehman Brothers Holdings Inc. filed for bankruptcy, has since recouped most of its losses and is headed for a weekly decline of 1.8 percent. It's down 33 percent from a record $147.27 a barrel reached on July 11.
Brent crude oil for November settlement rose as much as $2.73, or 2.9 percent, to $97.92 a barrel on London's ICE Futures Europe exchange. It was trading at $97.39 a barrel at 12:26 p.m. London time.
Gold futures in New York fell the most in almost 28 years as central banks eased investor concern by pumping cash into global credit markets and U.S. officials said they were developing a plan to stop banks from failing. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange were 6 percent lower at $843.20 an ounce in electronic trading as of 10:56 a.m. London time.