According to International Energy Agency, the global demand for oil has increased sharply. This is happening despite the economic recovery rate slowing down. The demand has surpassed the earlier estimates by a big amount.

Demand for crude is now expected to range between 87.9 million barrels a day in 2011. This is higher than the early estimated figure that was 50,000 barrels a day.

But, said IEA, there are going to be significant downward risks involved in this since the global economic outlook is uncertain. But for now the figures are suggesting, that the global economic activity is going to expand at 4.5 per cent during this year and will be capped somewhere around 4.3 per cent.

But during this while, the oil prices went down since the industrial output in China went up for 11 months while the productivity of US workers went down.

The crude delivery for September was down 0.6 per cent to end at $79.80 per barrel at the New York Mercantile Exchange.

World demand is expected to go up by 1.3 million barrels per day or 1.5 per cent in 2011.