IEA sees oil posting steepest fall since 1981

World oil demand this year will post the sharpest annual decline since 1981 as the global economy struggles to bounce back, the International Energy Agency (IEA) said.

Demand will contract by 2.56 million barrels per day in 2009, the agency, which advises 28 industrialised countries, said in a monthly report. It previously forecast demand would contract by 2.4 million bpd this year. The agency added a rise in oil prices, which topped $60 a barrel for the first time in six months this week, was due to sentiment and oil fundamentals remained weak.

Read more: Upstream Online