World demand for oil fell in 2009 but 2010 rise is forecast

WORLD oil consumption fell by 1.2 million barrels per day in 2009 – the largest drop since 1982 – but is likely to rise this year due to robust demand from emerging markets, BP's annual review of world energy predicted yesterday.

Economic recession cut consumption for the second consecutive year and demand in the OECD countries also fell to its lowest level since 1995.

Christof Ruehl, BP's chief economist, commented: "The strong link between energy and the global economy asserted itself."

However, he added that global oil demand was no longer declining and in fact appeared to be on a "rising path" in 2010. The report also said that increased energy efficiency and high prices would mean that OECD demand was unlikely to recover to the peak hit in 2005. The world's proven oil reserves stood at 1.33 trillion barrels last year, an increase of 700 million barrels from 2008.

Gas reserves grew by 2.21 trillion cubic metres last year, while production fell by 2.1 per cent, marking the first decline on record.

The report came as the Organisation of the Petroleum Exporting Countries trimmed its forecast for world oil demand growth in 2010 and increased its estimates for production from countries not in the group.

The monthly report from Opec, which pumps more than one in every three barrels of oil, said world oil demand would rise by 940,000 barrels per day in 2010, 10,000 barrels lower than previously forecast.