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Oil and gold: Oil prices surged, with U.S. light crude oil for October delivery briefly spiking more than $25 a barrel to hit $130 before pulling back to settle at $120.92, a gain of $16.37. Trading was briefly halted after it first spiked $10 a barrel.
Schork says he believes the big jump in June came after a big oil marketing firm had placed a big bet that the price of crude was going to drop. When that didn't come to fruition, the company had to cover their bet by buying a lot of oil contracts, and quickly. Other market players knew this firm had to buy the contracts so they effectively said, "We know you need this now, so pay up."