IEA revises up 2010 global oil demand

According to the International Energy Agency (IEA), global oil demand in 2010 is expected to grow by more than previously thought, reports Reuters.

The IEA increased its estimate for oil demand this year by 120,000 barrels of oil to 1.6 million barrels of oil per day.

Furthermore, the IEA has increased the amount of oil needed from OPEC by 300,000 barrels of oil since last month’s report, bringing the number of barrels of oil needed from OPEC to 29.4 million in 2010 -- up from 28.9 million barrels in 2009.

Additionally, the agency has increased its estimate for non-OPEC countries by 100,000 barrels of oil per day from last month’s report. This increases the required non-OPEC supply to 51.6 million barrels of oil in 2010, a 200,000 barrel climb from 2009.

This rebound in demand follows two years of waning oil consumption during the world’s worst financial crisis since 1930.

This growth in demand is being spurred by emerging markets, rather than established ones. The IEA contends that demand from industrialized nations has peaked.

“The demand growth is all coming from countries east of Suez,” David Fyfe, head of the oil industry and markets division of the IEA told Reuters Insider TV.

“The emerging economies of China, India, the rest of Asia and the Middle East is where all the action is.”

In fact, emerging market growth is predicted to average 6.1 percent, buoyed by governmental subsidies and economic stimulus.

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