PARIS-the International Energy Agency on Friday raised its forecast of demand for 2010 and 2011, quoted the stronger than expected consumption in North America and Asian emerging countries, particularly China
The Paris-based noted that OPEC under such conditions may be under pressure in the next year to increase the supply.
Global demand next year should hit 88.8 million barrels per day, 260000 daily FAT more than previously expected, the Agency said. THE IEA also raised their 2010 appreciation to 87.4 million barrels per day, up from its 130,000 daily BARRELS earlier forecast.
Oil is taken care of in the top-$ 1980s this week – to reach a two-year high of $ 90.76 on Tuesday – as traders have seen how much the global crude demand can grow in 2011.
Officials in the 12-nation organization of petroleum exporting countries are expected to leave the Group's production quotas unchanged at Saturday's meeting in Ecuador, THE IEA said in its latest monthly report.
"Before the meeting of THE OPEC ministers statements suggesting group is planning on a quick agreement to roll over the existing output target," said the report from the Agency, which is energy arm of the Organization for economic cooperation and development, a grouping of the world's richest countries.
But "in the light of the much stronger than expected global oil demand growth, but OPEC may come under pressure to increase the supply to the market for the new year prices continues its inexorable rise," the report said.
The Agency said that because of the higher than expected global demand next year, OPEC will probably need to produce an estimated 29.5 million barrels per day – 100 000 daily FAT more than the IEA's previous estimate.
Preliminary data from China suggests that demand was up 12.6 percent in October 2010, compared with a year earlier, THE IEA said.
"The strength of China's demand for oil is compatible with other indicators that suggest that the economy is in danger of overheating, said the report."It is not only has a GDP growth rate continues to hover around 10 percent mark, but inflation also creeping up. "
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