IEA hikes global oil demand forecast

The International Energy Agency (IEA) revised its forecast for global oil demand for the year 2010 by 170,000 barrels per day, citing the stronger than anticipated rebound in the global economy. However, a higher price assumption and persistently weak OECD oil demand. Global oil demand is estimated at 86.5 million barrels a day in 2010, or 1.8% higher than 2009 levels, the IEA said in its monthly report. This growth in demand will come entirely from emerging, non-OECD economies.

Meanwhile, the US government and OPEC came out with contrasting estimates for global oil demand this year, with the Energy Information Administration (EIA) boosting its growth forecast while OPEC trimmed its downbeat prediction. Encouraged by rising consumption in China and other Asian nations, the US government's energy analytical arm lifted its growth forecast by 120,000 barrels per day (bpd) to 1.2 million bpd as global use rebounds following two years of decline. "China's economic stimulus package continued to help push up both oil usage and economic growth," the EIA report said.

But the OPEC took a grimmer view, citing a slower-than-expected recovery from recession as it revised down its growth forecast for the year by 10,000 bpd to 810,000 bpd, the weakest outlook of the three main agencies that issue forecasts. "The slow pace of the recovery in the world economy in 2010 is putting pressure on oil demand," the report from OPEC's Vienna headquarters said. "Early assessment indicated that worse-than-expected U.S. oil demand might shave more than 100,000 bpd from the world oil demand growth forecast for 2010."