UPDATE 9-Oil jumps 2 pct as rescue plan lifts markets

                                
 * Euro, equities boosted by on aid package, help lift oil
                                
 * Crude surges after biggest weekly loss since Dec, 2008
                                
 * Coming up: Industry U.S. oil inventory report on Tuesday
                                
 (Recasts, updates prices, market activity)
                                
 By Robert Gibbons
                                
 NEW YORK, May 10 (Reuters) - Oil prices surged on Monday,
ending more than 2 percent higher as a $1 trillion global
emergency package to stabilize the euro helped lift commodities
and stock markets as investor risk appetite increased.
                                
 Crude futures ended a string of four down sessions and
prices rallied from Friday's intraday slide to a nearly
three-month low below $75.
                                
 The size of the aid package surprised market participants
and boosted confidence that oil demand growth will continue.
This boosted crude prices in the first trading session after
their biggest weekly loss since December, 2008.
                                
 "The risk trade has come back after traders last week ran
for cover as the uncertainty about the (Greece) bailout plan
kept traders on edge," Phil Flynn, analyst at PFGBest Research
in Chicago said in a note.
                                
 The rescue package consists of 440 billion euros in
guarantees from euro area states, plus 60 billion euros in a
European stabilization fund. Another 250 billion euros from the
International Monetary Fund. [ID:nSGE6490HH]
                                
 U.S. light crude oil futures for June delivery <CLc1> rose
$1.69, or 2.25 percent, to settle at $76.80 a barrel on Monday,
after hitting an intraday high of $78.51, up $3.40. ICE Brent
crude for June <LCOc1> rose $1.85 to settle at $80.12.
                                
 The euro <EUR=>  seesawed, rebounding from a 14-month low
hit last week to above $1.30 before paring gains. [USD] The
dollar index <.DXY> slipped.
                                
 On Wall Street, major stock indexes surged, with the S&P
500 index <.SPX>  having its best opening jump on record. [.N]
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 For a graph of crude oil futures and world stocks, click
 http://link.reuters.com/hez43k
                                
 For a graph of front-month crude contract volatility,
click:
                                
  http://link.reuters.com/jez43k
                                
 For a graph of 2010 commodity price performance, click:
                                
 http://link.reuters.com/hun72k  
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 "The euro loved the rescue package early, then equities
went up and technically there was a bounce (by crude) off a
double bottom of Thursday and Friday's lows," said Richard
Ilczyszyn senior market strategist at Lind-Waldock in Chicago.
                                
 Price charts show U.S. crude supported by Friday's $74.51
and Thursday's $74.58 intraday lows and that last week's slide
was too sharp not to be followed by a rebound.
                                
 Front-month U.S. oil futures ended back above the 200-day
moving average of $76.47 on Monday, after dropping below it
during last week's heavy slide. Crude had most recently dipped
below that average in February during intraday trade.
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http://graphics.thomsonreuters.com/gfx/RNK20101005144124.jpg
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 INVENTORIES STILL HIGH
                                
 OPEC Secretary-General Abdullah al-Badri said he expected
the rescue package to boost oil prices back above $80 a barrel,
but warned of wild price swings as the global economy continued
on its path to recovery. [ID:nLDE6490O5]
                                
 Badri said on Sunday that oil markets were oversupplied and
urged better OPEC-member compliance with output targets. He
said it was too early to talk about OPEC action to halt the
price fall sparked by the euro zone crisis. [ID:nLDE6480DY]
                                
 After last week's wild swings in the stock market, the
at-the-money implied volatility index for front-month crude
futures rose rose to 40.43, highest since December 2009.
                                
 High U.S. oil inventories, especially record levels at the
Cushing, Oklahoma, delivery point for U.S. benchmark crude oil,
have kept front-month crude futures priced well below the next
month. The spread rose on Monday <CL-1=R> and was over $3.50 in
late trading.
                                
 But top exporter Saudi Arabia will maintain full volumes to
its main Asian customers and keep supplies steady to at least
one European major next month. [ID:nTOE6480L0]
                                
 The Saudi's decision came as data showed China imported
21.17 million tonnes of crude oil or 5.15 million barrels per
day in April, a record high level on a daily basis and 31
percent above the year-ago period, according to customs
department data. [ID:nBJK000047]
 (Additional reporting by Gene Ramos in New York, Christopher
Johnson in London, Alejandro Barbajosa in Tokyo; Editing by
David Gregorio)