IEA forecasts strong rebound in demand

Global oil demand will rebound 1.7 percent next year as recovery in developing countries helps counter a two-year drop in oil usage sparked by the global recession, the International Energy Agency said July 10.

The Paris-based agency predicted July 10 in its closely watched monthly survey that global oil demand will increase by 1.4 million barrels a day in 2010 to 85.2 million barrels a day.

The IEA said this “strong rebound” would be led by growth in countries outside the rich-world Organization for Economic Cooperation and Development, but added that OECD countries should also post “a modest recovery.”

A rebound in oil demand next year would mark the end of two straight years of falling global oil demand, the first back-to-back yearly drop the world has seen since 1982-83. The IEA left its forecast for 2009 oil demand unchanged, and still expects it to drop 2.9 percent, following a 0.3 percent decline in 2008.

—The Associated Press