World oil prices perked up on Monday as investor worries over Dubai’s debt crisis receded, analysts said.
New York’s main contract, light sweet crude for January delivery, added 40 cents to $76,45 a barrel.
Brent North Sea crude for January delivery gained 44 cents to $77,62 a barrel in early London trading.
“It seems to have calmed down,” said Victor Shum, a Singapore-based analyst with the Purvin and Gertz energy consultancy.
“Reassurances from various governments have returned a bit of calm to the financial markets and oil markets, so oil pricing has gone up from the settlement price on Friday,” he said.
The United Arab Emirates central bank on Sunday guaranteed emergency liquidity for banks after global equity markets, as well as crude futures, slumped late last week.
The tumble was in reaction to a shock request from the government in Dubai, part of the UAE federation, to suspend the debt of flagship conglomerate Dubai World.
“The fear was that it would trigger the same crisis that started with the fall of Lehman [Brothers] last year,” said Shum.
Mike Fitzpatrick at MF Global added: “It shakes confidence in financial markets and raises the spectre of contagion, which could trigger a second wave in the credit crisis.
“This will be a troubling development for international banks which are increasingly dependent on Middle East markets” for their earnings. — AFP