* OPEC keeps output targets, wants prices at $70 to $80/bbl
* Eyes on China monetary policy with rate rise expected
* Coming Up: ECB President Trichet speech; 1830 GMT
(Updates throughout, changes dateline, pvs PERTH)
By Christopher Johnson
LONDON, Dec 13 (Reuters) - Oil rose on Monday after OPEC
agreed to keep output targets unchanged despite a surge in
heating fuel demand in the northern winter.
The Organization of the Petroleum Exporting Countries
decided on Saturday, as expected, to maintain its production
policy and leading member Saudi Arabia said it still favoured
oil prices between $70 and $80 per barrel. []
Oil has surged to above $90 this month as sub-zero
temperatures have swept across Europe, the United States and
parts of east Asia.
Europe is expected to have colder than normal temperatures
with energy demand above normal, according to DTN Meteorlogix,
and a storm has dumped large amounts of snow in the U.S.
Midwest. [] []
Bullish sentiment was underlined by oil price hawk
Venezuela, which called for $100 oil and said OPEC should not
lift output again through the end of 2011.
U.S. crude for January <CLc1> rose 59 cents to $88.38 a
barrel by 0854 GMT. ICE Brent <LCOc1> rose 77 cents to $91.25.
Several reports, including one from the International Energy
Agency raising its 2011 oil demand growth forecast, have
indicated that oil markets fundamentals are strong, with oil
inventories beginning to fall from historically high levels.
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For oil price forecasts, click: http://r.reuters.com/juq29q
For oil in different currencies: http://r.reuters.com/kuq29q
For OECD days forward cover: http://r.reuters.com/muq29q
For global oil supply/demand forecasts:
http://r.reuters.com/het29q
For OPEC news and analysis, click: []
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CHINA
But markets are worried that much of the strength in
commodities stems from China, where monetary policy has
encouraged high levels of consumption, leading to inflation.
Chinese authorities have begun to tighten money supply and
many analysts think that Beijing may soon raise interest rates.
Traders are watching closely for any policy moves that would
dampen demand in the world's number one energy consumer.
"In view of the high Chinese inflation numbers, which we
suspect are even higher than the official data suggests, we
believe a rate rise will come through sooner rather than later,
and that this will ultimately trigger a correction in a number
of already overheated commodity markets," said Edward Meir,
senior commodity correspondent at brokers MF Global.
China's headline inflation rose to a 28-month high of 5.1
percent in the year to November, from 4.4 percent in October,
the National Bureau of Statistics (NBS) said on Saturday.
[]
But China's monetary policy tightening should be gradual
because consumer inflation is unlikely to exceed 5 percent in
2011, an academic adviser to the central bank said in remarks
published on Monday.[]
China's implied oil demand in November rose 13.7 percent
from a year earlier to a record of nearly 9.3 million barrels
per day, Reuters calculations based on preliminary official data
showed on Monday. []
Data last week suggested oil demand is rising globally, even
in the heavily industrialised economies and will continue to
increase through 2011.
The International Energy Agency last week lifted its 2011
oil demand growth forecast by 130,000 bpd to 1.32 million bpd
from its previous monthly report. []
On Friday, U.S. data showed consumer sentiment rose more
than expected in early December to the highest level in six
months, according to the Thomson Reuters/University of Michigan
survey, while the government said the country's trade deficit
shrank much more than expected in October.
(Additional reporting by Rebekah Kebede; editing by Keiron
Henderson)
