The downward effect on world oil prices of Dubai's financial problems has proved to be short-lived, Algerian Energy and Mines Minister Chakib Khelil said on Tuesday.

Khelil told reporters at a conference in Algiers that the emirate's debt troubles had pushed oil prices lower but that their impact was now passed.

"So the prices have been affected but only for a short time and now the prices will stabilise," he said.

Concern eased that Dubai's problems would delay a global economy recovery after conglomerate Dubai World detailed its plan to restructure $26 billion of debts.

That helped push US crude prices towards $78 a barrel on Tuesday, adding to gains a day earlier.

Khelil said last week that Opec was likely to keep oil output unchanged at its next meeting on December 22. – Reuters