Global oil demand and prices will rise in 2010, driven higher by robust growth in emerging economies, the Paris-based International Energy Agency said today, raising its demand and prices forecasts. The energy watchdog of the advanced countries including Ireland, forecasts 2010 demand to rise to 86.5 million barrels a day in 2010 compared to a forecast last month of 86.3, while average prices will rise to $75 a barrel from $58 in 2009. Global daily demand is now estimated at 84.9 million barrels per day (mbd) in 2009. The IEA is forecasting a 1.6 million barrel per day increase. Demand growth is expected to come entirely from outside the Organisation for Economic Cooperation and Development (OECD), a grouping of 31 mainly developed economies including the UK, France, Germany, Japan, Ireland and the US. "'Even the recent record US and European winter snows look unlikely to revive OECD demand - -which remains flat at best in 2010," the watchdog said in its monthly oil market report. The IEA said slow growth in advanced economies such as in European and North American markets, was also because of a move away from oil to gas, renewable energies and nuclear power for heating, power and industrial processes. "The one area that drove OECD oil demand growth in recent years - North America - has virtually stalled as a result of the sharp economic recession, cheaper energy alternatives and behavioural changes," it said. By contrast, the world's major emerging economies, in particular Asian giants China and India, are expected to consume more and more oil as they return to strong growth and look to ramp up manufacturing.

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