The US Energy Information Administration (EIA) today raised its outlook for world oil demand at the end of 2009, as the economies of China and other Asian countries begin to improve.
In its new monthly energy forecast, the agency said it now expects a 410,000 barrel per day increase in the fourth quarter of 2009 from the same period a year ago. Its previous forecast estimated just a 240,000 bpd rise in fourth quarter demand.
World petroleum demand is still expected to drop overall in 2009 to 83.67 million bpd, well below the 2008 level of 85.46 million bpd.
The EIA estimates world oil consumption will rebound in 2010, climbing 1.1 million bpd compared to 2009. Last month the agency had projected a smaller increase of 910,000 bpd.
"Sustained economic growth in China and signs of a turnaround in other Asian countries continue to fuel expectations of a global recovery in world oil consumption," the EIA said.
Chinese oil demand was revised upward to 8.17 million bpd for 2009 from a previous estimate of 8.08 million bpd.
China's rapid economic growth was one of the key drivers of oil's six-year rally that sent prices up to near $150 a barrel last year.
In the United States, the world's largest petroleum consumer, oil demand is expected to fall 330,000 bpd in the fourth quarter from a year earlier.
US oil consumption in 2010 was revised up, with the EIA now expecting a 320,000 bpd increase in demand compared to 2009.
Reuters