Oil rises to near $77 as Dubai debt fears ease

I have grumbled consecutively since last five posts about the Dubai trouble but the Dubai government reassuring steps and the immediate action taken by Dubai's central bank have acted so as to curb the growing fears of the world. It is due to these steps that oil has rebounded to near $77 a barrel Monday in Asia. Benchmark crude for January delivery was up 52 cents to $76.57 at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.91 to settle at $76.05 on Friday.The United Arab Emirates central bank took steps to avert any run on banks by panicked depositors, pledging Sunday to offer additional money to foreign and domestic banks in the emirates amid concerns that UAE banks have some of the biggest exposure to Dubai World's debts.The promise of cheap funds signaled to global investors that the country's federal government -- backed by oil money -- will do what it can to limit the fallout from the indebted Dubai emirate.The weakening dollar and the strengthening of Asian markets today have also helped create the rise in oil prices.