Oil prices inched towards $78 a barrel today as concerns over the Dubai debt problem subsided.

For January delivery, US crude increased by 62¢ to $77.90 a barrel at 9:29am GMT, while London Brent crude increased by 62¢ to $79.09, according to Reuters.

Yesterday, global conglomerate Dubai World revealed details of a $26bn debt-restructuring proposal that seemed to mitigate global contagion fears.

Over the past two months, oil has remained in the range of $70 to $82 a barrel even though it has more than doubled compared with last December’s $33 price.