Prediction for oil demand raised

The Paris-based International Agency of Energy (IAE) on Friday slightly raised its earlier prediction of global oil demand in 2009 and 2010.

In its monthly report, the energy watchdog forecast that this year’s decline in demand would be less than previously thought, with a decrease of 1.6 percent on a yearly basis to 84.9 million barrels per day (bpd), up from the former prediction of a 1.7-per cent contraction. There would be an increase for 2010, the IAE said.

Demand will grow to 86.3 million bpd, with a rise of 1.4 million bpd from the 2009 level. A boost of oil demand in some Asian and Mideast countries, and the lasting effects of economic stimulus policies in some countries, caused the increase, the IAE said.