Oil rebounds, eyes U.S. inventory data

By Jane Merriman

LONDON (Reuters) - Oil rose more than $2 on Wednesday, after falling for the past two days, supported by expectations of a further fall in U.S. crude oil supplies and as OPEC brushed off U.S. calls to raise output.

U.S. light crude for December delivery rose $2.56 to $93.73 a barrel by 1802 GMT.

London Brent crude gained $2.29 to $91.12 a barrel.

Oil had fallen more than $7 a barrel from last week's record of $98.62, pressured by evidence that high prices may be affecting demand, after the International Energy Agency's latest monthly oil market report cut predictions for demand growth.

But a weak dollar and expectations that demand from emerging market countries will stay strong helped drive the market higher.

"All the reasons that have taken us above $90 are still here," said Harry Tchilinguirian, senior oil market analyst at BNP Paribas.

"If we have a very mild winter, then you could see prices cool off. If not, then oil demand growth remains strong in those areas that matter most: China, Asia and the Middle East."

Speculative inflows of money escaping difficult conditions in the credit markets have also helped bolster prices.