* China implied oil use jumps 12 pct to record 8.92 mln bpd
* U.S. crude stocks, distillates fall sharply -EIA
* OPEC raises 2011 global oil demand growth forecast
(Updates prices)
By Emma Farge
LONDON, Nov 11 (Reuters) - Oil hovered near $88 a barrel
after touching a 25-month high on Thursday, lifted by increased
consumption in the world's top two oil consuming nations and
after OPEC revised up its 2011 demand growth forecast.
U.S. crude for December <CLc1> was up 6 cents to $87.57 a
barrel, having pared losses after earlier touching a more than
two-year high of $88.63 earlier in the session. ICE Brent
<LCOc1> fell 6 cents to $88.90 a barrel by the same time.
China's industrial production grew 13.1 percent in October
from a year earlier, sending oil use in the world's second
biggest consumer to a record 8.92 million barrels per day (bpd).
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Crude inventories in the U.S. unexpectedly fell last week.
Declines in fuel stockpiles exceeded forecasts on
accelerating demand for distillate fuels such as diesel,
government data showed on Wednesday. []
"There was a downwards draw in stocks in the United States
and in countries like China there seems to be much better
demand," said Christoper 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."
Prices drew support after OPEC raised its 2011 estimate of
global oil demand growth by 120,000 barrels per day (bpd) to
1.17 million bpd. []
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For a graphic showing the technical outlook, see:
http://graphics.thomsonreuters.com/WT/20101111085044.jpg
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ABOVE $90?
Oil prices are on course to have risen in seven of the last
eight sessions, pushing them further above a previous range of
$70-$80 a barrel where they have mostly traded for a year.
"We think prices are on their way for a test of the $90
mark, at least in the Brent market," said Stefan Graber, a
commodities analyst with Credit Suisse in Singapore.
Other traders and analysts also expected a breach of $90 a
barrel but did not expect the rally to push prices as far as
$100 a barrel.
"I think you'll probably touch $90 maybe break above it and
then it should slow down and then come off a little bit," said
Andrey Kryuchenkov, commodities strategist at VTB Capital.
Oil prices rose despite a stronger dollar on Thursday and
weaker equities in a sign that the market is once again focusing
on its own fundamentals of supply and demand. [] <.DXY>
(Additional reporting by Isabel Coles and Alejandro
Barbajosa in Singapore; editing by William Hardy)
