Oil prices ticked higher during early dealing on Monday morning after Israel suspended the peace process, raising fears of a wider regional stand-off possibly involving major oil producers.
Brent North Sea crude for December delivery was selling for 31.90 dollars a barrel after closing at 31.62 dollars on Friday.
Market players took a nervous view after a weekend in which Arab nations threw their political and financial weight behind the Palestinians, and Israel subsequently declared a peace process "time out."
The fear remains that if the situation deteriorates further, Arab oil-producing states could wield their crucial oil supplies as a political lever to apply pressure on Israel and its western allies.
World oil markets desperately need all the crude supplies they can get, given the severely depleted levels of reserves and the prospect of a cold winter ahead.
Prices were sent skyrocketing to 10-year high points above 35 dollars earlier in the month amid concerns that a full-scale regional crisis could spark an Arab oil embargo -- LONDON (AFP)
© 2000 Al Bawaba (www.albawaba.com)
