OPEC hikes 2010 oil demand forecast

The Organization of the Petroleum Exporting Countries revised its 2010 global crude demand up to 85.07 million barrels per day on Wednesday — 75,000 barrels per day higher than its assessment last month.

The benchmark West Texas Intermediate futures contract on the NYMEX was hovering near $80 US per barrel on Wednesday.

If oil prices climb much higher, demand for crude oil will slip in the developed world, the supplier of about 35 per cent of the world's crude predicted. OPEC said in its November report that if prices climb and are sustained at higher levels, it would result in a one per cent decline in demand in industrialized nations.

The 12-nation bloc is scheduled to meet Dec. 22 in Angola to discuss production levels.

Supply cover-up alleged

The OPEC forecast comes a day after the International Energy Agency came under fire for allegations that the agency tones down its oil forecasts to avoid triggering panic buying, concealing the fact that the world has reached peak oil production.

The IEA predicted in its latest report that demand will increase to 105 million barrels a day by 2030 and that the world's energy resources are "adequate to meet the projected demand increase through to 2030 and well beyond."

But a whistleblower told the British Guardian newspaper the agency is responding to U.S. pressure to downplay how fast existing oilfields are being depleted while overplaying the chances of finding new reserves.