* China's oil demand, refinery runs hit record in October
* OPEC raises 2011 global oil demand growth forecast
* Crude's Relative Strength Index near overbought level
* Coming Up: IEA monthly oil report, Friday
(Updates with settlement prices and market activity)
By Gene Ramos
NEW YORK, Nov 11 (Reuters) - Oil fell from 25-month highs
struck early Thursday as gains in the dollar and the weaker
stock market offset strong Chinese demand data.
U.S. crude topped $88 a barrel after data from China
showing demand leaping to a record in October, before an
outlook issued by Cisco Systems Inc <CSCO.O> that economic
softness will hurt corporate profits dragged down equities and
weighed on oil. []
U.S. crude for December delivery <CLc1> settled unchanged
at $87.81 a barrel in a choppy session that early in the day
saw prices touch $88.63, highest intraday since Oct. 9, 2008.
Volume was below the 30-day average at around 658,000 lots,
according to preliminary Reuters data.
ICE December Brent <LC0c1> fell 15 cents to $88.81, after
climbing to $89.70, highest since Oct. 3, 2008.
"Crude futures are choppy, with volume light due to the
Veterans Day holiday. Traders are looking at the stock market,
where prices are down, but earlier data from China and an OPEC
demand forecast are constructive," said Andy Lebow, broker at
MF Global in New York.
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For a graphic showing the technical outlook, see:
http://link.reuters.com/nap94q
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Pressure also came from a rising dollar, although analysts
noted that the greenback's impact on oil had somewhat ebbed in
recent days as oil investors shifted their focus to tightening
fundamentals.
In late trading, the greenback rose 0.63 percent against a
basket of currencies. <.DXY>
U.S. crude had gained in seven out of eight previous
sessions, rising $6.38, or 7.8 percent, in that period. But a
key technical indicator appeared to be weighing on the market.
Support on Wednesday came from government data showing
U.S. crude stockpiles fell unexpectedly last week while a drop
in refined product supplies exceeded forecasts. []
"The market is starting to stall after a run-up in the past
couple of weeks," said Gene McGillian, analyst at Tradition
Energy in Stamford, Connecticut.
"There are renewed concerns about euro-zone debt and
worries that the U.S. fundamental picture may still be out of
line to support a surge to $90," McGillian added.
U.S. crude's Relative Strength Index edged up to 67.74 at
the close on Thursday, closing in on the 70 level that is
usually interpreted as a signal the market is overbought and
subject to a price correction.
The current rally has seen prices break above the $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.
ROSY DATA FROM CHINA, OPEC FORECAST
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 of 8.72 million bpd, up 12.2 percent from a year
earlier, as reported by the National Statistical Bureau on
Thursday.
The Organization of the Petroleum Exporting Countries
raised its forecast of global 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. []
(Additional reporting by Robert Gibbons in New York; Emma
Farge in London; Isabel Coles and Alejandro Barbajosa in
Singapore; editing by Jim Marshall)
