Oil prices climbed on Monday, as China's thirst for energy showed little sign of being quenched. Platts, the energy information arm of McGraw-Gill, said China's oil demand in November hit an all-time high of 9.3 million barrels per day. Benchmark oil for January delivery rose 79 cents to settle at $88.81 a barrel on the New York Mercantile Exchange. Since the contract expired Monday, many traders shifted their focus to the February contract, where the price rose 77 cents to settle at $89.37 a barrel, according to AP. Traders also are monitoring the stock markets for clues about where the global economy may be headed in the New Year. Stocks were mixed Monday after President Barack Obama on Friday signed a bill extending tax cuts and unemployment benefits. Many oil traders are taking the next two weeks off amid the year-end holidays. Global crude markets are closed Friday for Christmas. Analysts are mulling whether this year's strong global oil demand can carry over into 2011. Emerging markets, led by China, have accounted for most of the growth in oil consumption this year as the U.S. and Europe slowly recover from recession. «The positive demand shock has continued relentlessly,» Barclays Capital said in a report. Prices will likely rise «given the strength in underlying fundamentals and with macroeconomic sentiment continuing to improve.» Barclays said it expects crude to average $91 a barrel next year. Morgan Stanley, which is forecasting that oil will average $100 in 2011, said higher commodity prices could fuel inflation and undermine economic growth. «If developed world growth accelerates next year, commodity prices, particularly oil, could become a headwind for growth, lift inflation, and prompt policy tightening, particularly in emerging market economies,» Morgan Stanley said in a report. In other Nymex trading in January contracts, heating oil added 1.58 cents to settle at $2.4895 a gallon, gasoline futures gained 6 cents to settle at $2.3778 a gallon and natural gas gained 17.1 cents to settle at $4.129 per 1,000 cubic feet. In London, Brent crude rose $1.07 to settle at $92.74 a barrel on the ICE Futures exchange.
