Oil prices extended their decline from the previous day to fall below $74 a barrel today, as nervous investors, roiled by debt problems in Dubai, pared their positions.
Dubai has asked creditors of two of its flagship firms for a standstill on debt running into tens of billions of dollars as part of restructuring Dubai World, sparking fears of debt defaults that could hit other parts of the global economy and derail the fledging recovery from the global financial crisis.
Data painting a gloomy economic outlook in Japan, the world's third-largest energy consumer, put further stress on oil prices.
US crude for January delivery stood at $73.94 a barrel in electronic trading, down 5 per cent from earlier today. There was no settlement price yesterday because of the Thanksgiving holiday.
London Brent crude fell $1.26 to $75.73.
The New York Mercantile Exchange will have a shortened floor trading session today.
Oil prices have fallen about 10 per cent since striking a year-high of $82 early last month, as lacklustre economic data and bulging fuel inventories in the United States combine to dent hopes of a swift recovery in energy demand.
Reuters