Oil prices back over $54 as IEA hikes demand view

Oil prices bounced back above $54 on Friday as traders pushed prices up ahead of the weekend after the International Energy Agency said robust growth in the United States and China will pump up consumption even faster than expected this year.

US light crude bounced off session lows under $53 to settle 89 cents higher at $54.43 a barrel after tumbling more than $1.20 on Thursday. Brent crude in London settled 44 cents higher at $53.10 on Friday, having set a record $54.30 on Wednesday.

The IEA, which advises industrialized nations on energy policy, in its monthly Oil Market Report, revised up estimated 2005 demand growth by 290,000 barrels per day to 1.81 million bpd, taking annual global oil use to 84.3 million bpd.

Later on Friday, Venezuelan Energy Minister Rafael Ramirez said the Organization of Petroleum Exporting Countries has no need to increase the cartel's oil production and should maintain existing crude oil production quotas.

Opec oil ministers meet on March 16 in Iran to set market-share and production policy. Oil prices have risen about 25 per cent since the start of the year on concern about rising demand and tight supply.

Adding support Friday was the weaker US dollar after a report showed the US trade deficit widened in January to its second biggest on record.