Oil prices reversed earlier gains this evening after the dollar rose and fears about a Chinese rate hike offset the positive momentum from strong imports data.
China's central bank earlier increased the amount of money lenders must keep on reserve for the third time in one month, a move to mop up excess cash in the economy and rein in inflation.
US crude fell by 54 cents to $87.82 a barrel, after being up by around 50 cents earlier in the day. Brent crude lost 47 cents to $90.52.
Imports by China, the world's second-largest crude user, jumped 22.1% last month from a year earlier to 5.09 million barrels per day (bpd), the fourth highest monthly average on record.
Meanwhile, two of the world's most influential oil forecasters - OPEC and the IEA gave sharply different outlooks for 2011, as the consumer's watchdog anticipated robust demand and producer group OPEC said supply was plentiful.
The IEA, an adviser to 28 industrialised countries, said in a monthly report world oil demand would be higher than expected next year and until 2015, increasing the need for crude from the OPEC producer group. It lifted its 2011 oil demand growth forecast by 130,000 barrels per day (bpd) to 1.32 million bpd.
The OPEC forecast 2011 global oil demand growth would increase to 1.18 million barrels per day, only 10,000 bpd more than predicted in last month's report, making the case for no change in supply policy when it meets on Saturday in Quito.
OPEC said it wanted an improvement in oil market fundamentals before increasing crude supplies, even if prices go to $100 a barrel.
