The price of oil slumped to a seven-week low point this evening as the market worried about a shock call from the Dubai government to suspend the debt of a key state company.
US crude went as low as $72.39 a barrel - the lowest level since the start of October. It later pulled backed to $74.90, down $3.06 compared with Thursday's close. Brent crude dropped 89 cents to $76.10.
Stock markets were rattled after the Dubai government's investment vehicle Dubai World sought to suspend debt payments for six months. But European shares staged a modest rebound this afternoon. Oil prices began falling sharply on Thursday as news of Dubai's request emerged.
Earlier this week, the oil market reacted to US economic data that signalled a possible upturn in demand for energy in the US - the world's biggest oil-consuming nation.
