Crude oil prices wobble on Dubai concern

30 November 2009

Crude oil prices rose during the early part of the Asian trading session only to recede once more to around $76 (£46) a barrel as European markets opened.

Speaking to Bloomberg, Toby Hassall, a research analyst with CWA Global Markets Pty in Sydney, commented: "The market has run out of steam after spending most the year in an upward trajectory. The market is still coming to terms with the implications of the Dubai debt scare for oil."

However, he said the announcement that the UAE central bank will back debts owed by Dubai World should help to restore confidence in the emirate's economy and calm jitters about recovery in wider markets.

Dubai World announced that it was seeking extensions on its outstanding foreign debts last week as US markets closed for two days ahead of Thanksgiving.

Nakheel, another government-managed property developer and investment house, also announced debt difficulties, sparking panic that corporate failures in the emirate would add further depth to the global financial crisis.

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