Oil dipped more than 1%, reaching below $87 today.

US crude for December fell $1.01 to $86.80 a barrel at 02.52 GMT while London ICE Brent dropped 88¢ to $87.93, reports Reuters.

Oil had seen an upward trend during the past two weeks, partly due to the Organisation of the Petroleum Exporting Countries’ (OPEC’s) indication that it can tolerate higher oil prices and a US Federal Reserve plan to buy $600bn in treasury bonds to help economic recovery.

China’s industrial production was up 13.1% in October compared to its previous year, boosting oil demand to a record 8.92 million barrels a day (bpd).

OPEC raised its global oil demand forecast for next year by 310,000bpd to 86.95 million, and increased its consumption estimate for this year by around 190,000bpd to 85.78 million.