Oil demand seen bouncing back in 2010

By Barbara Lewis and Christopher Johnson

LONDON (Reuters) - Global oil demand will rebound 1.7 percent next year, led by rising consumption in emerging economies as the developed world recovers from recession, the International Energy Agency said on Friday.

But the IEA, adviser to 28 industrialised economies, still predicted demand would shrink this year and said the need for OPEC oil would be limited.

It forecast world oil consumption next year would reach 85.2 million barrels per day (bpd), up from 83.8 million this year. The demand outlook for this year was "effectively unchanged" -- down 2.9 percent, or 2.5 million bpd compared with last year.

David Fyfe, head of the IEA's oil industry and market division, said the extent of recovery in world oil demand would rest on the performance of the global economy and prices.

"It's highly dependent on economic recovery materialising and the expectation (oil) prices will remain in a relatively moderate range," he said.

He said a small upward revision in the estimate for oil demand "should not be interpreted as green shoots."

The 11 members of the Organisation of the Petroleum Exporting Countries subject to output curbs pumped 75,000 bpd more in June, compared with the previous month -- taking their compliance with promised cuts down to 68 percent from a revised estimate of around 69 percent in May.

The latest Reuters survey pegged OPEC compliance at 72 percent.