Oxygen (O2) is a fundamental element in the atmosphere. It is important to detect it in various fields. In this paper, a sensitive O2 sensor based on light-induced thermoelastic spectroscopy (LITES) with a high power diode laser is reported. A distributed feedback (DFB) diode laser emitting at 760 nm with output power of 16.8 mW was employed as the light source. The O2 absorption line at 13144.54 cm-1 was selected for the investigation. Wavelength modulation spectroscopy (WMS) technique and second harmonic signal demodulation (2f) were adopted to improve the sensing performance. For the concentration dynamic range from 20% to 80%, a linear relationship between the amplitude of 2f signal and O2 concentration was demonstrated. Allan deviation analysis was conducted to evaluate the long-term stability of the sensor system and the minimum detection limit (MDL) was measured to be 583 ppm at the optimum integration time of 100 s. Further improvement of this O2-LITES sensor system was also discussed.