IEA raises 2010 oil demand growth forecast

The International Agency revised up its global oil demand growth figure slightly due to increased fuel use in the United States, its monthly Oil Market Report said today.

The International Agency revised up its global oil demand growth figure slightly due to increased fuel use in the United States, its monthly Oil Market Report said on Thursday.

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The IEA raised its global oil demand growth forecast by 70,000 barrels per day to 1.68 million bpd from its estimate last month.

Demand this year will grow to 86.44 million barrels per day (bpd), up from 84.76 million bpd, said the Paris based agency, which advises 28 industrialised countries.

David Fyfe, head of the IEA's Oil Industry and Markets Division, said the revision was made due mainly to stronger than expected demand in the United States on further signs of a recovery in economic activity.

"The demand revision was a quite a minor one, but it was based on stronger demand for middle distillates in the United States," Fyfe said.

"Freights are moving more in the States and industry demand is picking up." Oil demand in Europe was likely to remain week, he said.