Oil prices close in on $90
World oil prices neared $90 for the first time in more than two years today, stoked by expectations of increased demand amid tight supplies, traders said.
Brent crude reached USD 89.70 a barrel in London trade -- its highest level in two years and close to reaching the 90-dollar mark for the first time since October 2008.
Brent North Sea crude for delivery in December later stood at $89.47, up 51 cents compared with yesterday's close.
New York's main contract, light sweet crude for December, was up 68 cents to $88.49 a barrel.
The Organisation of Petroleum Exporting Countries (OPEC) today revised upward its world oil demand growth estimates for this year and next amid cautious optimism about the global economic outlook.
OPEC said it was pencilling in world oil demand growth of 1.32 million barrels per day (bpd) or 1.6 per cent to 85.78 million bpd for the whole of 2010, compared with 1.3 per cent previously.
And in 2011, oil demand was forecast to increase by a further 1.17 million bpd or 1.4 per cent to 86.95 million bpd, instead of the previous estimate of 1.2 per cent, the cartel said in its latest monthly bulletin.
"Despite initial economic assessments that underestimated the second half of the year's economic activities, oil demand is picking up in the third and fourth quarters," OPEC wrote.
The report came one day after official data showed crude stockpiles in the United States, the world's biggest oil consumer, eased 3.3 million barrels in the week ending November 5, compared with forecasts of a rise.