WTI oil price firm over $89, global oil demand in focus

WTI oil prices start Thursday’s trading session firm over $89 a barrel while attention moves back to global oil demand, which many analysts forecast will be led by China and the rest of Asia.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $89.24 a barrel, 08.30 GMT on the NYMEX.

Global Oil Market at All Time Highs

“The global market for oil is diverging as never before. While the economy in the mature OECD regions continues to struggle, and with it oil demand, in the emerging markets it has generally been full speed ahead on both fronts.” said Wood Mackenzie analyst Francis Osborne.

Global 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.

“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. 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.” said Osborne.

Oil Prices set to Follow Demand

Monthly reports from the IEA and OPEC due out tomorrow are likely to revise global oil demand upwards significantly, which could offer more support to WTI and Brent oil prices.