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NT:Oil Demand High As Prices Surge
 
The latest statistics from BP on Wednesday indicate that Oil consumption rose by its fastest rate since 2004 last year.

The news came as members of the Opec oil cartel failed to agree on increasing oil production as a way of lowering prices.

Analysts had expected the Vienna meeting to raise output. As a result, oil prices jumped again on fears of limited supply.

The value of a barrel of Brent crude rose $1.07 to $117.85 a barrel.

Benchmark US crude for July delivery rose $1.65 to settle at $100.74 per barrel on the New York Mercantile Exchange.

Production of oil and gas fell sharply in the UK in 2010, though global reserves rose slightly, according to BP.

Oil consumption in 2010 rose by 3.1%, more than double the 10-year average increase, according to BP's annual statistical review.

The rise in consumption came despite rising prices - average oil prices in 2010 for Brent crude were the second highest on record.

Figures also out on Wednesday from the US Energy Information Agency showed weekly crude oil stocks fell while petrol stocks rose.

According to the BP report, much of the increased demand for oil continued to come from China - with demand rising by more than 10% or 860,000 barrels a day.

China also drove rising demand for energy around the world. Energy consumption rose by 5.6% - the fastest rate since 1973.

Norway saw the fastest falls in production, closely followed by the UK.

UK oil production was down 7.7% and UK gas production down 4.3%. At the same time, businesses and households consumed more energy.

Production has fallen as fields have run out of oil and because of technical issues at some fields.
Source