Crude prices surged yesterday after the US government said it was working on a comprehensive plan to rescue the banking system.

The US Treasury, the Federal Reserve and congressional leaders said late Thursday they were putting together a comprehensive plan to rescue financial sector.

In Nigeria, the second-largest oil producer in Africa, a militant group in southern Nigeria said it had destroyed a major oil pipeline belonging to Royal Dutch Shell.

A weakening US dollar also made oil and other commodities a more attractive investment for investors.

Light, sweet crude for October delivery jumped 6.67 dollars to settle at 104.55 dollars a barrel. In London, Brent North Sea crude for November climbed 4.42 dollars to settle at 99.61 dollars a barrel.