NEW YORK (Dow Jones)--Crude oil futures were higher Wednesday, breaking a two-day slide after data showed China imported record levels of oil in September and the dollar weakened.
Light, sweet crude for November delivery recently traded $1.10, or 1.4%, higher at $82.77 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 93 cents higher at $84.43 a barrel.
China imported 5.67 million barrels of crude oil in September, its highest ever monthly total and a year-on-year rise of 35%, on increased demand and higher domestic refining activity, according to the country's General Administration of Customs.
With supplies in the U.S. near 27-year highs, China's increase in imports spurred optimism about demand. In addition, the International Energy Agency revised up its forecast for global oil demand in 2010 and 2011 after a stronger-than-expected third quarter, though it downplayed expectations of rising prices next year.
"There seems to be a wider acknowledgement of the strength in oil demand that has emerged over the past few months," said Barclays Capital analysts in a client note.
Crude was also helped by a falling dollar, which dropped as the Federal Reserve minutes released Tuesday added to expectations that the central bank would take action to spur the economy. A weaker dollar makes oil cheaper for buyers in other currencies, and the greenback's slide in recent weeks has prompted the latest rally in crude that topped $84 a barrel last week.
The ICE dollar index, which measures the dollar's strength against a basket of currencies, was recently down 0.4%.
"The dollar is still weak," said Rich Ilczyszyn, a broker with Lind-Waldock. "As we get these numbers out of China and if the dollar stays relatively weak ... all commodities have a bit of a bullish bias."
Meanwhile, the Organization of Petroleum Exporting Countries is expected to keep output steady when it meets in Vienna Thursday.
"Yes, there is a consensus between members," to keep the current output ceiling unchanged, said Wilson Pastor, Ecuador's oil minister, who is also the OPEC president.
France remained embroiled in industrial unrest, with a nationwide strike adding to the ongoing dispute at the Fos-Lavera oil terminal, which has blocked ships from entering the world's No. 3 oil port.
At least 11 of mainland France's 12 refineries were affected by that strike. Oil group Total SA (FP.FR) said the strikes were forcing it to shut down all six of its French refineries.
Front-month November reformulated gasoline blendstock, or RBOB, recently traded 2.47 cents, or 1.2%, higher at $2.1486 a gallon. November heating oil recently traded 2.47 cents, or 1.1%, higher at $2.2872 a gallon.
-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com.
