Oil prices roared to a fresh record above $147 a barrel in intraday trade yesterday. But as momentous as the fact that the price is now threatening to reach the $150 landmark has been the extraordinary volatility in prices.

US crude on Tuesday recorded its largest one-day dollar decline - $5.33 a barrel - since the start of the first Gulf war in January 1991. Thursday saw the second largest one-day dollar gain - $5.60 - since crude futures started trading in the 1980s, forcing any bears who were rash enough to bet on a deeper correction to close out their short positions.