Oil prices slump under 75 dollars

LONDON (AFP) - Oil prices fell sharply on Friday, mirroring events on stock markets across Asia, where investors were spooked by a shock call from the Dubai government to suspend the debt of a key state company.
New Yorks main contract, light sweet crude for January delivery, dived 3.70 dollars, or almost five percent of its value, to 74.26 dollars a barrel. It earlier Friday reached 72.39 dollars the lowest level for two months. Brent North Sea crude for January delivery dropped 1.45 dollars to 75.54 dollars a barrel in early London trading. Equities markets were being sold off strongly... and oil is a victim of that, said National Australia Bank commodities analyst Ben Westmore.
Global stock markets dropped for a second day running on Friday over investor alarm about the potential for a widespread default after Dubais shock demand to suspend the debt of a key state company.
Asian indices suffered massive falls, with Hong Kongs Hang Seng Index slumping almost five percent by the close. Major European indices were down by about 0.50 percent in late morning deals.