Oil demand to be stronger in 2010

13 October 2009

14 October 2009 | Jake Kanter

Global demand for oil is set to grow next year as the economy recovers, according to the Organization of the Petroleum Exporting Countries (Opec).

The group's October oil market report said world demand for the commodity is expected to grow by 700,000 barrels a day to hit 84.93 million barrels a day in 2010.

Demand for Opec crude oil will average 28.4 million barrels a day, an increase of 300,000 barrels a day on the forecast last month.

Opec said the global economy is "showing signs of recovery" fuelled mainly by improved growth forecasts, particularly in China.

The Opec reference basket price fell by 5.9 per cent in September to reach $67.17 (£42.10) a barrel. Reports on increased oil supply and growing stocks pushed prices down.

But US dollar depreciation and improved economic forecasts meant prices reached an average of $67.63 (£42.30) a barrel in the week ending 9 October, after falling to $65.75 (£41.20) the week before. Today's Opec basket price is $70.94 (£44.40) a barrel.

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