IEA raises global oil demand forecast on higher outlook in Europe, non-OECD region

Global oil demand seen rising slightly

PARIS — The International Energy Agency says global oil demand will be 2.2 percent higher this year and will continue to grow in 2011, thanks to improving economic conditions in Europe and developing countries.

In a statement Wednesday, the Paris-based agency said global oil demand this year will reach 86.6 million barrels a day, up from its forecast last month of 86.5 million barrels.

The agency warns however that the short-term economic outlook “is highly uncertain” and that significant risks to oil demand growth remain.