Alert on ‘too hot’ crude oil price as demand nears record

Global demand for oil will hit a record high this year but crude prices are still "overheated" and could damage the economic recovery, the International Energy Agency said today.

The Paris-based agency said oil demand will reach an average of 86.6 million barrels per day in 2010, up from 84.93 million in 2009.

David Fyfe, head of the IEA's oil industry and markets division, said: "There are signs of oil demand picking up in North America and the Pacific, Asia and the Middle East, although consumption in Europe still looks weak."

The IEA said oil prices were "overheated" having hit $87 a barrel last week, the most expensive since October 2008, and could "stall economic recovery" in the developed world.

The price of crude was down 82 cents to $83.52 in New York and 65 cents to $84.12 in London today. The IEA said this was still too high.