* China raises reserves requirements, boosts oil imports
* IEA lifts global oil demand forecast
* OPEC SecGen says $100/bbl oil won't guarantee more output
(Updates with IEA, previous SINGAPORE)
By Una Galani
LONDON, Dec 10 (Reuters) - Oil rose for a second day on
Friday to trade close to $89 as Chinese crude imports rebounded,
and the International Energy Agency raised its global oil demand
forecast.
China's central bank on Friday increased the amount of money
lenders must keep on reserve for the third time in one month, a
move to mop up excess cash in the economy and rein in inflation.
[]
But oil kept rising after quickly slipping into negative
territory in a repetition of a November scenario, when the
market had expected China to raise rates but it only raised
reserves requirements.
"People think even with the tightening of monetary policy in
China there is still going to be high demand," said Christopher
Bellew, analyst at broker Bache Commodities, adding the cold
weather in the Northern Hemisphere was also supporting prices.
U.S. crude for January <CLc1> added 44 cents to $88.81 a
barrel at 1127 GMT, after hitting a 26-month high of $90.76 on
Tuesday. Prices were down slightly from a settlement above $89
last Friday. ICE Brent <LCOc1> rose 40 cents to $91.39.
Imports by China, the world's second-largest crude user,
jumped 22.1 percent last month from a year earlier to 5.09
million barrels per day (bpd), the fourth highest monthly
average on record, data showed on Friday. []
"In terms of the dynamic of China, I believe the data, the
policy and the road map for reform is suggesting further
sustainable strong demand," said Geoff Howie, sales and markets
strategist at MF Global in Singapore. "We are still bullish.
Asia is driving the price higher."
HIGHER GROWTH
The IEA, an adviser to 28 industrialised countries, said in
a monthly report world oil demand will be higher than expected
next year and until 2015, increasing the need for crude from the
OPEC producer group. []
It lifted its 2011 oil demand growth forecast by 130,000
barrels per day (bpd) to 1.32 million bpd.
The Organization of the Petroleum Exporting Countries (OPEC)
said it wanted an improvement in oil market fundamentals before
increasing crude supplies, even if prices go to $100 a barrel.
"If it goes to $100 due to speculation, OPEC will not move,"
OPEC Secretary General Abdullah al-Badri said in Quito, Ecuador,
where the group will meet on Saturday. []
China's November crude imports rose 31.9 percent from the
19-month low of 3.86 million bpd in October, a Reuters
calculation showed, as oil firms stepped up shipments to support
high refinery crude throughput amid widespread diesel shortages.
(Additional reporting by Alejandro Barbajosa in Singapore;
writing by Dmitry Zhdannikov; editing by James Jukwey)
