Oil rose for a second day in New York

Oil rose for a second day in New York on signs that demand from China will support measures to slow the economy and U.S. consumption is recovering.

Further reduced its weekly decline after China said that imports of crude rose in November and the International Energy Agency raised its forecast for 2011 oil demand for the third month. A report by the U.S. government yesterday showed jobless claims fell more than expected. China's central bank said it would raise the amount of the nation's lenders must keep as reserves of 20 December.

"The current prices have a lot to do with the strong demand out of China, as well as cold weather in the U.S. and Europe," said Thorbjoern Bak Jensen, an analyst with Global Risk Management in Middelfart, Denmark. "However, both inventories and OPEC capacity are still high, so expect prices back below $ 88, maybe even $ 86.30."

The January contract gained as much as 61 cents to $ 88.98 a barrel in electronic trading on the New York Mercantile Exchange and was at 88.71 U.S. dollars at noon, London time. Brent crude oil for January settlement rose to 57 cents, or 0.6 percent, to $ 91.56 a barrel on the ICE Futures Europe exchange in London.

Crude trims gains after China's central bank said it would raise the amount of the nation's lenders must keep as reserves by 50 basis points. China imported 20.9 million metric tons last month, or about 5.1 million bpd in October compared to 16.4 million, according to preliminary data today from the General Administration of Customs in Beijing.

Oil in New York rose to $ 90.76 a barrel on 7 December, the highest since October 2008. Future, up 0.5 percent this week, have gained 12 percent this year.

Fill tanks

Refineries in China, the world's second largest user of oil, have increased fuel production to meet a shortfall in the supply of diesel. diesel inventories fell for seven consecutive months of October and are now at about 6.2 million compared to $ 11.5 million in February, according to the Xinhua News Agency.

"It appears that refiners are beginning to fill the storage tanks after the stock levels have been reduced," said Serena Lim, a commodity strategist at Australia and New Zealand Banking Group Ltd. in Singapore. "The market is cautious today with the inflation numbers in China and OPEC still has yet to fulfill."

The International Energy Agency raised its forecast for 2011 global crude oil demand for the third month, citing increases in consumption in North America and China.

Global oil use will average 88.8 million bpd next year, about 260,000 barrels more than its previous forecast, the Paris-based adviser, said today in its monthly report on the oil market. increased demand could put pressure on OPEC to increase supply early next year, the IEA said.

OPEC Action

Prices up to $ 100 may indicate "something wrong with the fundamentals" of the market and system of the Organization of Petroleum Exporting Countries to act, "said Abdalla El-Badri, secretary general group.

Oil prices are at "appropriate levels," said El-Badri yesterday in Quito, Ecuador, where the organization will meet Dec. 11 to review output. Demand is growing rapidly in China and India and moderate members of the Organization for Economic Cooperation and Development said.

Oil may reduce next week amid speculation that China will raise interest rates, a survey showed. Eighteen of 39 analysts, or 46 percent, crude fall forecast by 17 December. Last week, analysts were divided on the direction of the market.