IEA report raises oil demand outlook on China consumption

The International Energy Agency report raised its forecast for 2009 and 2010 global oil demand, citing strong consumption in Asia, especially China, the world’s second-biggest consumer.In a monthly report, the energy adviser to 28 developed countries revised its forecast upward by 190,000 barrels a day for 2009 and 70,000 barrels a day for 2010.

Despite the revision, this year’s demand is still expected to remain 2.7% lower than last year’s, the IEA said. The world is expected to use 83.9 million barrels a day of oil this year, down from last year’s 86.3 million barrels. Consumption will rise to 85.3 million barrels a day in 2010, the IEA forecast.

“The revisions for 2009 were largely driven by OECD Pacific and non-OECD Asia,” said the IEA in the report. “However, these upward changes have barely dented the sharp demand contraction expected this year.” The evidence of a bottoming-out of the global recession is patchy,” it added.

Demand in Organization for Economic Cooperation and Development countries will fall by 5.2% this year from a year ago, the IEA said.

The IEA’s report came one day after the US Energy Information Administration projected global oil demand will rise in the last three months of this year, the first increase in five quarters.

Tags:  IEA