Global oil consumption is expected to increase by 1.75m barrels a day next year to total 85.2m b/d, suggesting that a recent fall-off in demand is temporary, the International Energy Agency, the industrialised countries' watchdog, said on Tuesday.

The forecast pushed futures prices in New York and London up by more than $1. US benchmark crude oil futures rose $1.30 to $63.10 in early afternoon trading.