The International Energy Agency raised its forecast for global oil demand this year as developing countries need more crude to fuel their economies. The IEA increased its estimate for world demand in 2010 by 170,000 barrels a day to 86.5 million barrels a day. That would mean a gain of 1.6 million barrels a day, or 1.8 percent, from 2009 levels, it said. Consumption growth is driven entirely by economies outside the Organization for Economic Cooperation and Development, the IEA said.
“Global oil demand now takes its cue primarily from rising emerging country incomes,” the Paris-based agency said in its monthly oil market report today. “More robust economic projections by the International Monetary Fund, notably for 2010, are partly counterbalanced by a higher price assumption and persistently weak OECD oil demand data.” The IMF forecasts world economic growth of 3.8 percent this year, up 0.8 percentage point from its previous estimate. While the estimates for both OECD and non-OECD economies were revised up, it is emerging and developing economies that are the key driving force in the economic recovery and rebound in oil demand, the IEA said.
Oil consumption in those countries, where economic growth is forecast at 6.1 percent, is expected to average 41 million barrels a day in 2010, an increase from last year of 1.6 million barrels a day, or 4 percent, according to the IEA. That is 170,000 barrels a day more than the agency estimated last month.....Read the entire article.
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