Oil Rises on U.A.E. Backing for Dubai’s Banks, Weaker Dollar

Crude oil rose in New York after the United Arab Emirates’ central bank said it “stands behind” the country’s banks, easing concerns about a possible default by Dubai World. Oil gained as much as 0.9 percent after the Abu Dhabi based U.A.E. central bank said yesterday lenders will be able to borrow using a special facility tied to their current accounts. The dollar declined against the euro, bolstering the attraction of commodities as an alternative investment.

“The market is still coming to terms with the implications of the Dubai debt scare for oil,” said Toby Hassall, research analyst with CWA Global Markets Pty in Sydney. The move by the U.A.E central bank could be a “positive sign,” he said. Crude oil for January delivery gained 45 cents, or 0.6 percent, to $76.50 a barrel in electronic trading on the New York Mercantile Exchange at 12:09 p.m. Sydney time. It earlier dropped as much as 0.3 percent.....Read the entire article.

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Crude Oil Declines on Concern U.S. Economic Recovery May Stall

Crude oil declined, paring this week’s gain, as a gauge of U.S. manufacturing unexpectedly fell, jobless claims rose and a stronger dollar bolstered skepticism about the recovery in the biggest energy consuming nation. Oil snapped two days of increases after the number of Americans filing first time claims for unemployment benefits climbed and a report showed manufacturing dropped lower than projected by economists. Oil also fell as the dollar rose to a three week high against the euro.

“Commodities overall took a hit from that negative turn in macro sentiment, combined with the advancing dollar,” said Toby Hassall, a research analyst at CWA Global Markets PTY in Sydney. Crude oil for November delivery dropped as much as 72 cents, or 1 percent, to $70.10 a barrel in electronic trading on the New York Mercantile Exchange, and was at $70.14 at 8:54 a.m. Singapore time. Yesterday, the contract rose 21 cents to settle at $70.82.....read the entire article