Oil extends gains on Mideast tensions

Oil rose above $80 on Monday on Middle East tensions while equities slid in New York as political and interest rate concerns dented the recent rally. Brent North Sea crude, the international benchmark oil contract, went above $80 per barrel for the first time since late August. Oil futures have experienced recent volatility, with Brent slumping under $70 last month on concerns about weak demand before intensified fighting in the Middle East sent prices soaring 10 per cent last week. Israel is preparing its retaliation against Iran over its missile attack last week, raising fears of an all-out regional war that could involve strikes on oil facilities. Beyond Middle East tensions, oil is also being supported by hopes of stronger Chinese demand after Beijing recently announced major stimulus measures to boost its flagging economy.