EIA raises estimates for global oil demand in 2011 (by Claudia Assis)

SAN FRANCISCO (MarketWatch) -- The Energy Information Association on Tuesday increased its estimates for world oil consumption this year, saying demand will grow by 1.7 million barrels per day in 2011, about 300,000 barrels a day higher than the agency's last month forecast. The higher estimate is due to higher expectations "of consumption for electricity generation in China, Japan, and the Middle East," the EIA said. The agency projected world consumption will increase by 1.6 million barrels a day in 2012, unchanged from last month's outlook. The EIA also estimated supplies from non-OPEC countries to increase by an average of about 590,000 barrels a day in 2011, and supplies from OPEC members to decline by 370,000 barrels a day. The agency added it assumes about half of Libya's pre-disruption production will resume by the end of 2012. Crude oil for July delivery (cln11) retreated 73 cents, or 0.7%, to $98.28 a barrel on the New York Mercantile Exchange.