IEA raises oil demand forecast

The International Energy Agency (IEA), the energy adviser to 28 developed countries, raised its forecast for global oil demand by nearly 500,000 barrels per day (bpd) for 2009 and 2010. The Paris-based agency cited stronger-than-expected economic data in OECD North America and non-OECD Asia for the upgrade. In its August report, the IEA had revised its oil demand forecast upward by 190,000 bpd for 2009 and 70,000 bpd for 2010. The IEA said that global demand is now expected to average 84.4 million bpd in 2009 and 85.7 million bpd in 2010. Still, the worldwide oil demand for the year 2009 is expected to be 2.2% lower than it was last year.

"Despite these upward adjustments, demand is poised to remain weak in the OECD for the reminder of this year, while the underlying strength of non-OECD demand has been obscured by massive stock building in China," the IEA said in its monthly report. "Moreover, the specter of a double-dip, 'W-shaped' recession, which would undermine oil-demand growth next year, cannot be entirely discounted," it added.