LONDON (AFP) — Oil prices rose more than three dollars on Monday after world leaders united to tackle a financial crisis engulfing Europe and the United States, analysts said. New York's main contract, light sweet crude for delivery in November jumped 3.17 dollars to 80.87 dollars a barrel, recovering from one-year lows hit Friday. The contract had plunged 8.89 dollars to 77.70 at the end of last week, in tandem with a global equities meltdown on fears of recession that would crimp demand for energy. On Monday, London's Brent North Sea crude for November delivery won 3.02 dollars to 77.11 dollars a barrel in late morning deals. Brent had plunged 8.57 dollars Friday to almost half its record high of above 147.50 dollars reached in July, when supply disruptions sent prices soaring. "Oil prices were higher (Monday) after world leaders rushed out plans over the weekend to help stabilise their banking systems," said Sucden analyst Nimit Khamar. "The announcements over the weekend helped lift sentiment and calmed fears of a global recession, which buoyed oil prices after heavy losses last week." Meanwhile Iran, the world's fourth-largest oil producer, predicted over the weekend that OPEC would cut oil output at its emergency meeting due next month. The 12-nation Organization of the Petroleum Exporting Countries last week announced it would hold a meeting in Vienna on November 18 to discuss the effects of the international financial crisis. "I think it's certainly on the cards that OPEC might trim production targets in November but we have to wait and see," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia. Moore added Monday that the cartel was unlikely to want to "exacerbate the difficult economic situation." A cut in output could send prices soaring once again. Crude prices had broken through 100 dollars a barrel for the first time at the start of 2008. European governments attacked the financial crisis on several fronts Monday, buying into banks and giving huge new loans in a campaign that brought relief to shell-shocked stock markets. Share prices in Europe and Asia rose sharply after a summit of European leaders agreed hundreds of billions of dollars of measures to guarantee inter-bank lending and make state funds available to buy banking stocks. But new stormclouds emerged with the European Union warning that Hungary may need help after its currency slumped last week. Britain ploughed 37 billion pounds (47 billion euros, 64 billion dollars) into a trio of struggling banks. France, Germany and Italy were to announce national rescue packages later in the day. Meanwhile on Monday, European central banks moved to free up frozen lending by providing commercial banks with unlimited amounts of dollars in a joint operation that might be reinforced by Japan. Australia had announced at the weekend its intention to guarantee local bank deposits. The country's central bank also pumped 2.85 billion dollars (1.9 billion US) into the financial system to ease the grinding liquidity crisis.

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