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Greater oil demand seen for 2009 | Greater oil demand seen for 2009 |
(about 12 hours later) | |
Demand for oil this year will be more than previously expected, according to the International Energy Agency (IEA). | Demand for oil this year will be more than previously expected, according to the International Energy Agency (IEA). |
The IEA said in its monthly survey that oil consumption would now drop by 2.9% to 83.3 million barrels a day. | The IEA said in its monthly survey that oil consumption would now drop by 2.9% to 83.3 million barrels a day. |
The body had expected a 3% annual decline this year, the biggest drop since 1981. | The body had expected a 3% annual decline this year, the biggest drop since 1981. |
The higher forecast, the first increase in the IEA's expectations in 10 months, may add to signs that the worst of the global recession is over. | The higher forecast, the first increase in the IEA's expectations in 10 months, may add to signs that the worst of the global recession is over. |
"These revisions do not necessarily imply the beginnings of a global economic recovery, and may only signal the bottoming out of the recession," the IEA said. | "These revisions do not necessarily imply the beginnings of a global economic recovery, and may only signal the bottoming out of the recession," the IEA said. |
The report came as oil prices rose above $72 a barrel, close to an eight-month high. | The report came as oil prices rose above $72 a barrel, close to an eight-month high. |
US light sweet crude rose by $1.55 to $72.68. London Brent crude rose slightly to $71.79. | |
The price of oil has more than doubled this year. | The price of oil has more than doubled this year. |
It touched lows of about $32 a barrel in December, but is still nowhere near the all-time high of $147 reached in July last year. | It touched lows of about $32 a barrel in December, but is still nowhere near the all-time high of $147 reached in July last year. |
On Tuesday, the US Energy Department's Energy Information Administration predicted that oil prices would average $67 a barrel in the second half of 2009. A month ago, its forecast was $55. | On Tuesday, the US Energy Department's Energy Information Administration predicted that oil prices would average $67 a barrel in the second half of 2009. A month ago, its forecast was $55. |
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