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Global Oil Demand To Rise Amid Recovery

Faster economic growth next year, particularly in the developing world, will drive oil demand higher than previously expected, International Energy Agency said.

PARIS (AP) -- Faster economic growth next year, particularly in the developing world, will drive oil demand higher than previously expected, the International Energy Agency said Friday.

The Paris-based IEA, which advises oil-consuming countries, said crude demand would reach 86.1 million barrels a day in 2010, up 1.7 percent from this year, the IEA said in its monthly oil report. That's up from the IEA's forecast last month for oil demand of 85.7 million barrels a day in 2010.

The IEA said "buoyant economic activity in more oil intensive emerging countries" was largely the cause of its revision. It also noted the International Monetary Fund's move last week to hike its forecast for economic growth next year to 3.1 percent, up from its April forecast of 1.9 percent growth.

The agency said, however, that "the outlook for 2010 is still fraught with uncertainty," and said 2010 oil demand could be significantly lower if economic growth next year is less than forecasters now project.