Oil climbs to 25-mth high on US supply

SINGAPORE: Oil reached a 25-month high for a fifth consecutive session on Thursday as strong industrial output sent demand in China to a record and a surplus subsided in top consumer the United States.

U.S. crude for December CLc1 rose 64 cents to $88.45 a barrel at 0709 GMT, after touching $88.54 earlier, its highest since October 2008. ICE Brent LCOc1 added 64 cents to $89.60.

China's industrial production grew 13.1 percent in October from a year earlier, boosting oil use in the world's second-largest consumer by 12 percent to a record 8.92 million barrels per day (bpd).

Crude inventories in the U.S. unexpectedly fell last week, while declines in fuel stockpiles exceeded forecasts, government data showed on Wednesday, as the nation's oil demand increased by 2.9 percent on a rolling four-week basis.

"The oil market is currently dominated by positive news," said Stefan Graber, a commodities analyst with Credit Suisse in Singapore. "We think prices are on their way for a test of the $90 mark, at least in the Brent market."