LONDON, Nov 11 (Reuters) - Oil climbed to 25-month highs above $88 a barrel on Thursday after strong industrial ouptut boosted Chinese demand to a record high and fuel stocks in the world's top oil consumer the United States fell sharply.
U.S. crude for December CLc1 rose 51 cents to $88.32 a barrel by 1040 GMT, after earlier touching $88.55, its highest since October 2008. ICE Brent LCOc1 rose 34 cents to $89.30 a barrel after touching more than a two-year high earlier.
China's industrial production grew 13.1 percent in October from a year earlier, sending oil use in the world's second biggest consumer to a record 8.92 million barrels per day (bpd). [ID:nTOE6AA03C] [ID:nBJK000086]
Crude inventories in the U.S. unexpectedly fell last week, while declines in fuel stockpiles exceeded forecasts, government data showed on Wednesday. [EIA/S]
"There was a downwards draw in stocks in the United States and in countries like China there seems to be much better demand," said Christoper Bellew, a broker at Bache Commodities, adding, "I don't think it's the feeding frenzy we had in 2008 but we are possibly in a range between $80-$95 a barrel."
The market shrugged off a stronger dollar on Thursday and weaker equities in a sign that the market is once again focusing on its own fundamentals of supply and demand. [.EU] .DXY
