I am not shocked at all about this story below, or about OPEC increasing cuts….The price will certainly head back up toward $90+ Read on… Also watch my interview below with Cavuto last week. I discuss this very subject of demand form China.

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Oil Rises More Than 4% as China Unveils Growth Support Package

By Gavin Evans
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Nov. 10 (Bloomberg) — Crude oil advanced more than 4 percent on speculation stimulus plans by China and other major economies may help sustain growth and demand for fuel.

China, the world’s second-largest oil consumer, yesterday said it will spend 4 trillion yuan ($586 billion) through 2010 to prop up the biggest contributor to global economic growth. Copper futures gained as much as 4.9 percent and gold also rose after China said it will increase spending on infrastructure and encourage investment in machinery.

“It’s a pretty big spending package they’ve announced,” said Toby Hassall, research analyst at Commodity Warrants Australia Pty in Sydney. It will “definitely give the commodity markets a bit of a boost.”