NEW YORK, Nov. 29 (Reuters) – Oil prices settled down more than 2 percent at about $76 a barrel on Friday as fears of possible defaults in Dubai convulsed financial markets and boosted safe-haven demand for the US dollar.

US crude for January delivery fell $1.91 to $76.05 a barrel, 2.5 percent below Wednesday's settlement.

US markets were closed on Thursday for the Thanksgiving holiday.
London Brent crude rose 19 cents to $77.18 from Thursday's settlement price.

Crude oil markets have looked to wider macro-economic data and equities markets for signs of an economic recovery that could lift oil demand.

Dubai has asked for a debt standstill on tens of billions of dollars as part of a restructuring, sparking debt default fears that could hit other parts of the global economy and derail a fledgling recovery from 2008's financial crisis.