* China's oil demand, refinery runs hit record in October
* OPEC raises 2011 global oil demand growth forecast
* Coming Up: IEA monthly oil report, Friday
(Recasts, updates prices and market activity, adds new by-line
and changes dateline, previously LONDON)
By Gene Ramos
NEW YORK, Nov 11 (Reuters) - Oil prices were up a hair
after pulling back from a new 25-month high above $88 a barrel
on Thursday, as record demand in No. 2 oil consumer China and
an upbeat OPEC consumption forecast trumped a surging dollar.
Oil remained buoyant following Wednesday's data showing
heavy drawdowns in crude and fuel inventories in the United
States, the top oil user, that has brought back market focus on
fundamentals.
At 12:30 p.m. EST (1730 GMT) U.S. crude for December
delivery <CLc1> was up 9 cents at $87.90 a barrel, after
touching $88.63, the highest intraday price since Oct. 9, 2008.
The contract has risen 10 percent from the $80.56 low hit on
Oct. 29.
ICE Brent <LCOc1> rose 6 cents to $89.02, after climbing to
$89.16, highest since Oct. 3, 2008.
China's industrial production grew 13.1 percent in October
from a year earlier, sending oil usage in the world's second
biggest consumer to a record 8.92 million barrels per day
(bpd). [] []
Chinese demand was fueled mainly by a record refinery
throughput at 8.72 million bpd, up 12.2 percent from a year
earlier, as reported by the National Statistical Bureau earlier
on Thursday.
The Organization of the Petroleum Exporting Countries
raised its estimate of global oil demand growth for 2011 by
120,000 barrels per day and now expects an increase of 1.17
million bpd in global oil consumption in 2011 over 2010.
At the same time, the cartel raised its forecast of world
oil demand next year by about 310,000 bpd to 86.95 million bpd,
and increased its estimate of consumption this year by around
190,000 bpd to 85.78 million bpd. []
U.S. crude stockpiles fell unexpectedly last week while
refined product supplies dropped well above market forecasts,
as demand improved, data from the U.S. Energy Information
Administration showed. []
"There was a downwards draw in stocks in the United States
and in countries like China there seems to be much better
demand," said Christopher Bellew, a broker at Bache
Commodities, adding, "I don't think it's the feeding frenzy we
had in 2008 but we are possibly in a range between $80-$95 a
barrel."
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For a graphic showing the technical outlook, see:
http://link.reuters.com/nap94q
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ABOVE $90?
In the current market rally, U.S. crude has broken above
the year's $70-$85 range, partly on OPEC's signals that it can
tolerate higher oil prices and on a plan by the U.S. Federal
Reserve to buy $600 billion in Treasury bonds to help speed
economic growth.
"We view short term upside price possibilities to the
$90.50 level per nearby WTI crude futures as a very high
probability within less than a one-week time frame," said Jim
Ritterbusch, president of trading consultant Jim Ritterbusch &
Associates in Galena, Illinois.
Oil prices rose even though the dollar extended gains
against the euro and a basket of currencies. <.DXY>
Markets also shrugged off a dip in U.S. equities. []
Usually, a stronger dollar and weaker equities drive
investment flow away from commodities.
(Additional reporting by Robert Gibbons in New York;Emma Farge
in London; Isabel Coles and Alejandro Barbajosa in Singapore;
editing by Alden Bentley)
