U.S. EIA raises 2010 world oil demand outlook

WASHINGTON (Reuters) - The U.S. government on Tuesday raised its estimate for world oil demand next year, as Asian economies continue to rebound.

In its new monthly energy forecast, the Energy Information Administration said it expects 2010 world oil demand to rise 1.26 million barrels per day from a year earlier. Last month the agency had projected a smaller increase of 1.1 million bpd.

"China and other Asian countries outside of the OECD continue to lead a global economic and oil market turnaround," the EIA said.

The agency also increased its forecast for world oil demand in 2009 to 84.14 million bpd, up from a prior estimate of 83.67 million bpd. Global petroleum consumption this year is still well below the 85.78 million bpd level reached in 2008.

In the United States, the world's largest petroleum consumer, demand is expected to rise 290,000 bpd in 2010. This is less than the agency's prior forecast of a 320,000-bpd increase in demand next year.

The agency also cut its forecast for U.S. gasoline demand in the first quarter of 2010, lowering its estimate to a 50,000 bpd year on year rise.

U.S. distillate demand in the first quarter of 2010 is projected to fall 70,000 bpd compared to the same period a year earlier.

(Reporting by Ayesha Rascoe; Editing by John Picinich)