UPDATE 8-Oil up $2 as US inventory fall stokes supply worry

(Updates prices, paragraph 2)

By Matthew Robinson

NEW YORK, Oct 24 (Reuters) - Oil prices jumped more than $2 on Wednesday after a sharp fall in U.S. inventories and the prospect of supply disruptions from Mexico due to foul weather stirred up fears of a winter energy crunch.

Soaring world oil prices have spurred the United States and China -- the two largest oil consuming nations -- to call on OPEC to further raise output. [nPEK71074] [ID:nN24553693]

U.S. crude CLc1 rose $2.37 to $87.64 a barrel in late electronic trade, after settling up $1.83 at $87.10 a barrel. London Brent crude LCOc1 settled up $1.52 to $84.37.

Wednesday's gains came after a U.S. government report showed crude stocks in the world's top consumer fell 5.3 million barrels last week, surprising forecasters, who had expected an increase of 800,000 barrels.

"This report could set the stage for a test of the contract highs," said Jim Ritterbusch, president of Ritterbusch & Associates. "This is going to entice a lot of fund money back into the long side of this market."

The data from the U.S. Energy Information Administration also showed a decline of 1.8 million barrels in distillate stocks, which include heating oil, and a drop of 2 million barrels in gasoline stocks.

"The debate remains very much alive as to whether the oil market remains seriously under-supplied going into winter," investment bank Citi said in a research note.