While President George Bush is in Saudi Arabia, oil breaks $127 for first time. Up more than $3.00 in one day.

It seems like the price jump is based entirely on trading issues rather than an event that would impair future deliveries. There's no news about Nigeria, Iran, Iraq, Russia, Venezuela, or other "hot spots" that have triggered similar jumps in the past.

There was some talk about an increase in demand for diesel to run generators in China, but that seems to be minimal compared to financial issues.