OPEC boosts oil demand forecast

OPEC has slightly increased its forecast for oil demand in 2010 and 2011.

The new forecast is 80,000 barrels a day higher than the last projection.

But the oil cartel notes that much of the increase hinges on China's economic growth as the world economy struggles to emerge from its worst recession in decades.

The Organization of Petroleum Exporting Countries projects that oil demand will hit 85.59 million barrels a day in 2010 and 86.64 million in 2011.

OPEC is scheduled to meet this week. It says that a rally in government stimulus programs in the first half of 2010 helped oil demand grow and that China accounted for almost half of the world's total oil demand growth.

Crude oil futures were down $75 cents to $81.46 US a barrel in Tuesday morning trading in New York.