* Oil continues rally on U.S. rescue plan
* Saudi trims oil supply to majors
* Nigerian rebels declare unilateral ceasefire
* U.S. oil sector recovering from Ike
(Updates prices, paragraphs 3, 4)
By Joe Brock
LONDON, Sept 22 (Reuters) - Oil rose more than 10 percent
on Monday -- the biggest one-day gain in a decade -- continuing
a rally sparked by the United States' rescue plan for its
financial sector.
Sweeping government measures to rescue the financial system
and restore confidence in shaky markets spurred gains across
markets on Friday, when oil rose almost 7 percent to cap its
biggest three-day rally in a decade.
U.S. crude for October delivery, which expires Monday
<CLc1>, rose $11.38 or 10.9 percent, to to 115.93, a barrel by
1740 GMT -- the biggest gain since June 22, 1998.
London Brent crude <LCOc1> traded up $6.11 to $105.72.
"The key driver continues to be the U.S. rescue package
which has changed the sentiment in the oil market," said Bank
of Ireland analyst Paul Harris.
Oil has tumbled from record highs over $147 a barrel in
mid-July, weighed down by growing evidence that high energy
costs and economic woes were undercutting global fuel demand.
Further pressure came last week as financial sector turmoil
sent investors out of commodities and into safer havens,
sending oil to a seven-month low of $90.51 a barrel.
The slow recovery of the U.S. oil sector after Hurricane
Ike also supported prices, after causing the biggest disruption
to the nation's energy supplies since 2006.
Nearly 90 percent of oil production in the U.S. Gulf of
Mexico, home to a quarter of all U.S. oil output, remains shut
along with seven refineries. []
Oil prices were also supported by news China increased
crude imports 11.54 percent in August from a year earlier,
recovering from a steep July fall, the General Administration
of Customs said on Friday, confirming earlier data.
[]
"The Chinese import news is a sign of recovery, and a good
indication that oil prices could get back up again." said
Christopher Bellew of Bache Financial.
Industry sources also said on Monday that top oil exporter
Saudi Arabia has trimmed oil supplies to international majors
and U.S. refiners since the start of September. []
However, gains were capped by news that Nigeria's main
militant group had begun a unilateral ceasefire on Sunday after
a week of clashes with the military and attacks on oil
installations which cut output in Africa's top producer.
[]
(Reporting by Joe Brock, Matthew Robinson, David Sheppard
in London; Fayen Wong in Perth; Richard Valdmanis in New York)
