Oil spikes to USD 76.52 a barrel

Brent North Sea crude for January delivery rose 37 cents to 77.55 dollars.

“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 guaranteed emergency liquidity for banks after global equity markets,as well as crude futures,slumped late last week.

The slump 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.