World oil demand to reach all-time high this year

World oil demand is likely to exceed the previous all time high reached in 2007, mainly driven by huge demand from the Asian countries, a report said on Wednesday.

Oil demand globally is forecasted to reach an annual average 86.7 million barrels a day in 2010 -- 100,000 barrels a day higher than in 2007, said Wood Mackenzie.

Wood Mackenzie forecasts the demand to increase to 88.1 million bpd in 2011 and about 90 million in 2012.

This year will see the recovery of all the demand lost during 2008 and 2009, while in 2011 world demand will be two percent above the peak pre-recession level hit in 2007. In 2012 demand will be almost four percent higher than this peak,” said Francis Osborne, analyst, Wood Mackenzie. Only twice before in the past 30 years has demand grown as much as this, and in recent years, 2010 will be second only to the surge in 2004.”

The report said that the recovery in the global oil demand is mainly led by China where diesel, gasoil and gasoline demand is growing at eight percent annually.

According to an IEA report in July, China overtook the US as the largest consumer of energy in the world in 2009.

The IEA said China’s energy consumption surpassed the US by 0.4 percent at 2.252 billion tons of oil equivalent in 2009 whereas the US consumed 2.17 billion tons.

Automobile sales in China reached 13.6 million in 2009 surpassing the US as the world’s biggest auto market for the first time.

On the other hand, India is recording 7 percent annual increase in the consumption of diesel and gasoil. Gasoline demand is growing 11 percent per annum.

The research firm said Asia’s oil market this year will be 3 million bpd larger than the North American market - in 2008 it was 1.4 million bpd larger.

The global market for oil is diverging as never before. OECD demand fell by a total 3.9 million bpd over the course of 2008 and 2009. On the other hand emerging market demand increased by 1.6 million bpd, said Osborne.