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New York - Oil prices jumped on Monday local time, after a positive business data sparked optimism the U.S. economic recovery and fears about Dubai's debt crisis subsided.

The main futures contract, New York, light sweet crude for January delivery, rose 1.23 dollars from Friday closing at 77.28 dollars per barrel.

New York futures contract had fallen nearly two dollars on Friday as the market reacted to the announcement of Dubai that they want the six-month moratorium on debt payments flagship conglomerate Dubai World.

In London, oil, Brent North Sea crude for January delivery rose 1.29 dollars to settle at 78.47 dollars per barrel.

World oil prices got a boost on news of an unexpected increase in business activity in the U.S. Midwest region, which gives the momentum of recovery from the recession the U.S. is rising.

Purchasing managers index (PMI) Chicago rose for a second consecutive month, to 56.1 in November from 54.2. Most analysts expect a slight decrease to 53.3 in the regional index of the Institute for Supply Management (ISM).

The survey is stronger than expected "indicates that the recovery in manufacturing is spreading beyond the automobile," said Ryan Sweet of Moody `s Economy.com.

Jason Schenker of Prestige Economics said that the short-term traders, betting on falling oil prices, which squeezed out of the market "price-supported bullish economic data."

Figures PMI "today bode well for tomorrow and ISM numbers ISM numbers bode well for a number of GDP (gross domestic product)."

ISM publishes the U.S. manufacturing sector data for November on Tuesday.

The market opened higher after a little lower as investors continued to monitor the debt crisis of Dubai.

"For commodities, this new wrinkle in the global economic crisis forced the traders out of your comfort zone` `carry trade them," said Phil Flynn, senior market analyst at PFG Best.

"It looks like the market again carried by the trade because of risk appetite back to life," Flynn said.

Investors appeared after the central bank United Arab Emirates will support local banks and foreign in the UAE, a group of seven emirates including Dubai.

"We know the game plan of this crisis, and it is a guarantee someone out, print more money and asked then," said Flynn.

Oil prices recovered to the 75-82 dollar limits where they have been trading for the last few weeks.

"There is an interesting and encouraging in this range is driven by the medium-term economic data," said Schenker.

Mike Fitzpatrick of MF Global warned that rising oil prices staggered supported expectations for higher demand from economic recovery.

"Currently there are no more convincing evidence supports the conclusion that other than just the recovery that may take place fragile," he said.

"This is why the market may be vulnerable to correction, the level that would make the product to change based on market perception that fundamentals are still weak." (*) (ANTARA News / AFP)