Global oil use set to hit new record this year

The prospect of rising oil prices was raised today after the International Energy Agency increased its forecast for daily global oil consumption this year by 900,000 barrels a day to a record average of 90.8 million barrels.

The IEA raised its forecast by 1 per cent amid rising growth expectations for China, and warned the increase could put upward pressure on the oil price because it coincides with a decline in Saudi Arabia's production.

"All of a sudden, the market looks tighter than we thought," an IEA spokesman said. "OECD inventories are getting tighter – a clean break from the protracted builds that had been a hallmark of 2012."

China will use 390,000 barrels a day more oil this year than last, taking its daily consumption to 10 million barrels, the IEA said.