Owen was the tormentor in chief as his first-half double saw Newcastle open up a 49-39 lead in these old rivalries and stretch their unbeaten record in these showdowns to nine matches.
Owen struck after just four minutes and then again on the stroke of half-time and from then on there was little chance of any way back for the powder-puff Sunderland attack, despite a never-say-die approach from Kenwyne Jones.
Sunderland went into the game without the on-loan Jonny Evans and his former Manchester United team-mate Phil Bardsley. This meant recalls for two other Old Trafford old boys, Paul McShane and Danny Higginbotham.
Newcastle were at full strength and went into the game unbeaten in five during which time they had hit ten goals with Kevin Keegan searching for a third successive home win.
History showed that Newcastle would always score in this game, as they had never failed to grab a goal in this derby since 1966.
And it took just four minutes for Newcastle to open their account, with McShane caught napping.
Geremi hit a perfect cross from the right and with McShane ball-watching, Owen ghosted in behind him and got to the ball first to plant a firm header to Craig Gordon's right.
It was a dream start, but something Newcastle struggled to build upon as Sunderland's packed midfield had plenty of the ball without producing any creativity. Far too often they launched the long ball for Jones who was left to battle it out alone up front.
Andy Reid tried a couple of long-range efforts, but never looked like beating Steve Harper and his resolute back four, in which Habib Beye was again outstanding.
Newcastle wrapped up the win on the stroke of the break when Owen charged into the area and received a backheel from Mark Viduka and forced Higginbotham to handle to ball as he lunged in.
Owen took the spot-kick responsibilities and Gordon guessed right going to his right only to dive over the ball which hit his lower body and ended up in the back of the net.
Sunderland could have buckled and thrown the towel in, but refused to do so, although they did receive five bookings from referee Mike Dean.
Owen released Obafemi Martins in the 68th minute only for Gordon to block the ball with his body.
Play switched straight upfield and Jones saw a header from McShane's cross acrobatically saved by the alert Harper.
That was Sunderland's final act at reducing the arrears and they had to settle for second best.
Newcastle are now definitely safe from relegation while Sunderland can still mathematically be dragged into contention, but they would be unlucky to find themselves in that position and are almost as good as safe.