2011 oil demand expected to increase

Global crude oil use will increase next year despite reduced demand in the developed world, the IEA says.

The Paris-based International Energy Agency says global crude demand is expected to increase by 1.3 million barrels or 1.6 per cent to 87.8 million barrels per day next year. Much of that increase is tied to demand from developing nations, especially China.

Demand in rich, developed countries is expected to fall by 0.5 per cent. Savings in fuel efficiency and fuel substitutes should outweigh a boost from faster economic growth, the agency said.

The 2010 demand forecast was unchanged at 86.5 million barrels per day. That's a 2.1 per cent increase over what the world consumed in 2009.