October crude oil traded higher in early morning action, helped by a weaker US dollar, a rally in world stock markets and talk that China may offer financial support to Italy. The latest global oil demand figures from the IEA were released this morning and forecasted a drop in both 2011 and 2012. The IEA expects oil supplies to increase at a greater than expected rate, helped by the return of Libyan production sooner than initial forecasts. Some traders suggested that the crude oil market might be drafting support from expectations that forecast this week's EIA data to show a large draw in the aftermath of Hurricane Irene and Tropical Storm Lee. Estimates from the Bureau of Ocean Energy Maintenance estimate that nearly 5,000,000 barrels of oil production were lost during the September 3 to September 9 time period.