* China implied oil use jumps 12 pct to record 8.92 mln bpd
* Technicals show ascending channel to $89 []
* Coming Up: OPEC monthly oil market report; 1035 GMT
(Updates with fresh 25-month highs, adds Brent milestone)
By Alejandro Barbajosa
SINGAPORE, Nov 11 (Reuters) - 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 61 cents to $88.42 a
barrel at 0718 GMT, after touching $88.54 earlier, its highest
since October 2008. Front-month ICE Brent <LCOc1> climbed 51
cents to $89.47, after earlier reaching $89.65, also its
highest in more than two years.
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."
China raised its refinery throughput in October to a new
high following the start-up of two new refineries, official
data showed on Thursday, on strong domestic fuel consumption
ahead of an official price hike at the pumps. []
Throughput in the first 10 months expanded 13.9 percent
from a year earlier to 347.95 million tonnes, or 8.36 million
bpd.
The record refinery output came despite a slump in China's
crude imports in October. Refiners had plenty of stocks to draw
on, following record purchases in the previous month.
For a table of China oil and gas output: []
PUT TO THE SWORD
An Energy Information Administration (EIA) government
report on Wednesday showed a 3.3 million-barrel drawdown in
U.S. crude inventories last week, compared with forecasts for a
1.4 million-barrel gain.
Stockpiles of distillate, including heating oil and diesel,
fell 5 million barrels as demand for the fuels over the past
four weeks jumped 16 percent from the same period a year
earlier.
"Any lingering perception that the oil market is primarily
characterised by high inventories does now appear to be in the
process of being put to the sword rather brutally," Barclays
Capital analysts headed by Paul Horsnell said.
Gasoline and heating oil led gains in the oil price complex
on Wednesday after the bigger-than-expected declines in
inventories as demand rose, partly stoked by distillate exports
to Europe, even as refiners stepped up production.
U.S. economic growth showed more tentative signs of
improving on Wednesday as jobless benefit claims hit a
four-month low last week and the international trade gap
narrowed in September. []
Japan's Nikkei stock index rose to its highest since June
on Thursday, adding to returns that have outstripped U.S. and
European markets so far in November, while the blast of Chinese
economic data also supported prices of other commodities.
The dollar weakened by less than 0.1 percent against a
basket of currencies. [] <.DXY>
Chinese consumer price inflation in October quickened to
its fastest pace in two years, which is likely to sharpen
complaints from Beijing and others that the Federal Reserve's
$600 billion money printing scheme will hasten capital flows to
their economies, complicating efforts to keep price pressures
at bay.
