IEA Raises 2010 Global Oil Forecast

8 October 2009 (Last Updated October 8th, 2009 18:30)

World oil demand will recover at a faster pace than previously expected next year, the International Energy Agency (IEA) has announced. In a monthly report, the IEA, which advises 28 industrialised economies, increased its global oil demand growth estimate for 2010 to 1.42 million barr

World oil demand will recover at a faster pace than previously expected next year, the International Energy Agency (IEA) has announced.

In a monthly report, the IEA, which advises 28 industrialised economies, increased its global oil demand growth estimate for 2010 to 1.42 million barrels per day (bpd), up 150,000bpd from its previous projection.

Next year, world oil demand is expected to average 86.05 million bpd, reflecting more optimistic economic projections from the International Monetary Fund and stronger data for the Americas and Asia.

"Demand is nudging higher," the head of the IEA's Oil Industry and Markets Division, David Fyfe, told Reuters.

Oil inventories in the developed OECD countries fell to the equivalent of 60.7 days of forward demand cover at the end of August, down from 61.4 days at the end of July, the report said.

The Organization of the Petroleum Exporting Countries (Opec) pumped more oil in September than in August - taking compliance with promised output curbs down to 62% from 66%, the IEA said.

Opec left its official output target unchanged at a meeting in September, but lower supply from the group still has the potential to tighten the market, according to the IEA.