IEA: Global oil demand seen rising slightly

Global oil demand will rise 2.2 percent this year and will continue to grow in 2011, thanks to improving economic conditions in Europe and developing countries, the International Energy Agency said Wednesday.

In its monthly report on the oil markets, the Paris-based agency said global oil demand this year will reach 86.6 million barrels a day, up from its forecast last month of 86.5 million barrels.

The agency warned, however, that the short-term economic outlook “is highly uncertain” and that significant risks to oil demand growth remain.

The IEA, the energy arm of the Organization for Economic Cooperation and Development, a grouping of the world’s richest nations, also raised its oil demand forecast for 2011. The agency expects global oil demand next year to rise 1.5 percent to 87.9 million barrels a day, up from its forecast last month of 87.8 million barrels.

OECD member states’ oil demand is now forecast to show slight growth of 0.2 percent this year, compared to the IEA’s forecast last month of a small drop. The agency said the increase was based on “slightly higher readings in Europe” and a “reappraisal of U.S. demand prospects.”

Non-OECD states’ oil demand is forecast to increase 4.5 percent this year and 3.7 percent in 2011. Growth is being driven by higher economic assumptions and stronger than expected readings in Asia and the former Soviet Union, the IEA said.

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