* NYMEX floor closed for trading for Christmas holiday
* Oil price rally stokes inflation fears
* No signals from OPEC on production increases
(Repeats to remove extraneous word in headline)
By Dmitry Zhdannikov/Randi Fabi
LONDON/SINGAPORE, Dec 24 (Reuters) - Oil hovered around its
highest levels in more than two years on Friday, supported by
cold weather across the globe, appetite for risk assets and no
signals from OPEC it was prepared to arrest the rally.
European benchmark ICE Brent crude for February <LCOc1> hit
$94.74 a barrel, its highest level since October 2008, before
easing to around $93.90 by 1115 GMT in thin trade.
Global benchmark U.S. crude futures <CLc1>, which hit a
26-month high of $91.63 on Thursday, did not trade on Friday
with the NYMEX floor closed for the Christmas holiday.
Brent, trading at a premium to U.S. crude, has surged partly
due to a severe cold snap in continental Europe and Britain.
Snow was forecast in parts of Europe over the weekend,
threatening to prolong chaos at airlines and rail networks and
further boost fuel demand. []
Analysts said oil could continue its rally on strong global
demand and falling inventories in 2011, which promises to be a
strong year for risk assets as confidence about the global
economic recovery picks up.
The 19-commodity Reuters-Jefferies CRB index <.CRB> closed
on Thursday at its highest level since October 2008.
"With the continuous commodity Index posting new all time
highs and the S&P rising on supportive breadth, it is difficult
not to maintain our bullish commodity and equity outlook heading
into the first quarter of 2011," Barclays Capital said in a
note.
"The latest surge has brought $100 per barrel within range
for Brent crude in particular".
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For a graphic on prices: http://link.reuters.com/jam43r
Analysis on oil's impact in developing world: []
Preview of Cairo meeting: []
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INFLATIONARY WORRIES
Oil's more than 30 percent climb from this year's low in May
has revived concerns that prices could once again impact
economic growth for fuel importing countries.
South Korea's finance minister warned on Friday that the
fifth-largest buyer of crude oil could face inflationary
pressures next year. []
In India, the government is expected to decide next week
whether to increase state-set fuel prices to cushion domestic
oil retailers []
China, the world's second-biggest energy user, raised
gasoline and diesel prices to record levels on Wednesday as it
aimed to encourage refiners to boost supplies to meet demand.
The government said it would prohibit transport companies
passing the rise on to the population. But higher commodity
prices helped raise Chinese consumer inflation to a 28-month
high in November.
Still, economists expect the inflationary impact from higher
oil prices to be weaker than in the past in emerging economies
due to rising consumer demand and booming expansion.
U.S. economic data on Thursday showed new U.S. claims for
jobless benefits dipped last week and consumer spending
increased in November for a fifth-straight month, reinforcing
views of a solid economic growth pace []
OPEC NOT TO "ROCK THE MARKET BOAT"
OPEC ministers have so far hailed oil prices as "fair",
showing little inclination to pump more crude.
Arab OPEC ministers are meeting in Cairo this weekend where
they may discuss oil production and price, but no formal
decision on output will take place. OPEC's next scheduled
meeting is for June.
Libya's top oil official, Shokri Ghanem, said the country
was producing 1.5 million bpd at the moment while having
capacity of 2 million.
"Production is according with our international commitment,
in particular our OPEC commitment, and in the meanwhile we don't
want to rock the boat of the market," he said.
OPEC most influential minister, Saudi Arabia's Ali al-Naimi
said he was still happy with the oil price at $70-$80, but did
not say what could be done to bring them back to that level.
(Additional reporting by Seng Li Peng; Editing by Simon Webb
and Sue Thomas)
