* U.S. crude and Brent both rise more than $1 per barrel
* 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 detail, comment, prices)
By Una Galani and Christopher Johnson
LONDON, Dec 13 (Reuters) - Oil rose more than a dollar on
Monday in line with other commodities on strong economic data
out of China and after OPEC agreed to keep its production
targets unchanged.
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. []
Optimism among investors was boosted by data from China's
National Bureau of Statistics showing industrial output in
November topped expectations, while headline inflation rose to a
28-month high to 5.1 percent.
"It's not just oil (that is strong) it is the entire
commodities spectrum," said Carsten Fritsch, an oil analyst at
Commerzbank in Frankfurt, as Tokyo rubber futures and London
copper hit historic highs, while gold also rose. []
U.S. crude for January <CLc1> rose $1.30 to $89.09 a barrel
by 1433 GMT. ICE Brent <LCOc1> jumped $1.82 to a high of $92.30.
The dollar <.DXY> fell by around 0.45 percent against a basket
of currencies.
Bullish sentiment was underlined by oil price hawk
Venezuela, which called at the OPEC meeting for $100 oil and
said OPEC should not lift output again through the end of 2011.
Prices have also been supported by unseasonably cold weather
in Europe, the United States and parts of east Asia leading to
higher than normal energy consumption for this time of year.
[] []
In a note to clients, Barclays Capital said "a June meeting
effectively gives the market the green light for the tilt at
$100 and beyond" referring to OPEC's decision not to reconvene
earlier next year.
Expectations of higher oil prices have drawn investors into
U.S. crude oil futures also known as West Texas Intermediate,
data from the Commodity Futures Trading Commission shows.
Speculators raised their net long positions in U.S. crude
futures to a record high in the seven days to Dec. 7, the day
prices hit $90 a barrel for the first time in over two years.
STRONG FUNDAMENTALS
Several reports, including one from the International Energy
Agency last week raising its 2011 oil demand growth forecast,
have indicated that fundamentals are strong, with oil stocks
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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But markets are worried that much of the strength in
commodities stems from China, where high inflation is pointing
to a rise in interest rates.
"The fact is that much higher-than-expected inflation data
is being ignored today but this may change as soon as tomorrow,"
Fritsch cautioned.
Chinese authorities have begun to tighten money supply and
are expected to raise interest rates before the end of the year,
according to a Reuters poll. []
Traders are watching closely for any policy moves that would
dampen demand in the world's number one energy consumer.
"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 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. []
(Additional reporting by Rebekah Kebede in Perth; editing by
Keiron Henderson)
