LONDON, Sept 23: Oil prices fell on Tuesday in choppy trade marked by profit-taking one day after New York crude soared more than $16 in its biggest-ever daily jump.

The massive price gain on Monday was driven partly by hopes that a massive US bailout plan for the banking system would also bolster the global economy and thus maintain strong demand for energy.

The rally was also driven by technical factors because the contract for New York oil deliverable in October had expired on Monday.

On Tuesday at 1600 GMT, New York’s new main contract, light sweet crude for November delivery, showed a loss of $2.37 at $107 a barrel.

The October contract had soared $16.37 a barrel to close at $120.92 on Monday after hitting an intra-day high of $130.

Oil had also been buoyed by the weak US currency, which makes dollar-priced oil cheaper for buyers using stronger currencies, stimulating demand.

Monday’s price gains in New York exceeded the previous record one-day rise of $10.75 on June 6.

Meanwhile, on Tuesday, Brent North Sea crude for November dived $2.61 to $103.43 a barrel. It had jumped $6.43 on Monday.

“Oil was lower on Tuesday, correcting after Monday’s meteoric and historic rise, with concerns about the US toxic debt bailout plan growing,” said Michael Davies at the Sucden brokerage in London.

“There are many, including us, who feel that the optimism we have seen since news of the plan broke last Thursday is unfounded.

“The US plans are still far from certain and will not help the damage to the real economy already done by the recent turmoil, which we are yet to see.

“Also, the longer the plans take to be finalised, the more uncertainty will grow, with many expecting no outcome until next week as policy makers argue over the proposal,” said Davies.—AFP