IEA Sees Higher Global Oil Use as Economy Recovers

LONDON (Reuters) – Global oil demand will be almost 0.5 million barrels per day (bpd) higher than previously forecast this year and next on stronger-than-expected U.S. and Chinese fuel consumption, the International Energy Agency said.

The IEA, adviser to 28 industrialized economies, said on Thursday world oil consumption would average 84.4 million bpd in 2009 — down 2.2 percent from 2008 due to the economic downturn.

But it said in its monthly Oil Market Report that demand would rally next year, rising 1.3 million bpd, or more than 1.5 percent, as recovery takes hold.

David Fyfe, head of the IEA’s oil industry and market division, said oil consumption would pick up again toward the end of this year after a period of extreme weakness, especially in the large, developed economies.

“The year-on-year decline will diminish as we go through the end of 2009, and then from early 2010, we will begin to see year-on-year growth in global demand,” Fyfe said.

NY Times