Global oil demand returns to growth - IEA

By Chris Baldwin

LONDON (Reuters) - The world will use more oil in the fourth quarter of 2009, marking the first time global fuel demand has risen year-on-year since the second quarter of 2008, the International Energy Agency said on Thursday.

After successive year-on-year contractions in demand throughout 2009, the IEA's monthly Oil Market Report said oil use was edging higher in the final three months of this year.

The Paris-based adviser to 28 industrialised economies raised its 2009 global oil demand estimate from last month's report by 210,000 barrels to 84.8 million barrels per day (bpd), following a strengthening of the world economy.

Asia leads the rebound in growth, but consumers in developed countries, where economies remain fragile, are more sensitive to high prices, with signs of demand destruction when oil prices rise above $80 per barrel, said David Fyfe, head of Oil Industry and Markets Division at the IEA.

"If prices keep rebounding, there's a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East," Fyfe said.

Next year world oil demand is expected to average 86.2 million bpd, following stronger-than-expected preliminary data in North America and buoyant demand in non-OECD Asia and the Middle East, the IEA said.

The oil market fell below $79 a barrel on Thursday, not far below its year-high of $82 touched in October. The price is still well-below last year's record of above $147 touched in July 2008.

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