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Oil higher after world leaders pledge to tackle global crisis

Oil prices were higher in Asia on Monday after world leaders united to tackle a global financial crisis engulfing Europe and the US, analysts said.

business Updated: Oct 13, 2008 11:00 IST

Oil prices were higher in Asia on Monday after world leaders united to tackle a global financial crisis engulfing Europe and the US, analysts said.

New York's main contract, light sweet crude for delivery in November was $2.45 higher at $80.15 a barrel, recovering from one-year lows reached on Friday.

The contract had plunged $8.89 to $77.70 at the end of last week, in tandem with a global equities meltdown on fears of recession that would crimp demand for energy.

Brent North Sea crude for November delivery traded $2.18 higher at $76.27.

On Friday in London, Brent fell by $8.57 to settle at $74.09.

Oil prices have already plunged from record highs above $147, reached in July, because of demand worries, dealers said.

But today's recovery followed weekend signals by US and European leaders that they have a growing commitment to take joint action to end the turmoil after the Wall Street collapse of investment bank Lehman Brothers unleashed a worldwide crash on stock markets.

French President Nicolas Sarkozy, who oversees the French presidency of the European Union, said governments would buy into banks to boost their finances and guarantee inter-bank lending.

The European announcement came after the Group of Seven industrialised nations proposed an action plan at weekend meetings in Washington.

Meanwhile, the 12-nation Organisation of the Petroleum Exporting Countries (OPEC) announced Thursday that it would hold an emergency meeting in Vienna on November 18 to discuss the effects of the international financial crisis.