Oil prices climbed Wednesday on China's strengthening economy, which underscored increasing petroleum demand as the world recovers from recession. New York's main contract, light sweet crude for delivery in December, added US$0.23 to end at US$79.28 per barrel. London's Brent North Sea crude for December delivery gained US$0.45 to US$77.95 per barrel. Traders said new data showed China, the world's third largest economy, continued to strengthen following the worst global crisis in decades. Industrial production and retail sales picked up pace in October, while demand for Chinese exports improved, official data in Beijing showed Wednesday. The data put the government's growth target of eight percent well within reach for 2009. Beijing sees the growth rate essential for job creation and keeping a lid on social unrest in the country of 1.3 billion people. "Industrial production numbers out of China could get the bull's jets revved up," said oil analyst Phil Flynn of PFG Best. He said China was part of the reason behind the U.S. Energy Information Administration's decision Tuesday to raise the global oil demand outlook by 150,000 barrels a day. The EIA said sustained economic growth in China and other Asian countries was contributing to the beginning of a rebound in world oil consumption. It revised upwards its expectations for world oil consumption for the second consecutive month. Meanwhile in Vienna Wednesday, the OPEC cartel of oil producers left broadly unchanged its forecasts for world oil demand growth both this year and next year, warning of downside risks should economic recovery remain weak. World oil demand in 2009 was expected to contract by 1.39 million barrels per day to 84.31 million bpd, the Organization of Petroleum Exporting Countries said in its November report.

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