The International Energy Agency (IEA) has increased its global oil demand forecasts for 2010 by 1.8 per cent to 86.6 million barrels per day. IEA said emerging markets are boosting demand, especially in China where it surged an astonishing 28 per cent in January compared with the same month a year earlier. <br/><br/>But the IEA said demand in developed countries would fall by 0.3 per cent in 2010. Oil prices are at their highest point for two months, with US light, sweet crude above 82 dollars a barrel. <br/><br/>The IEA said the price level is due to heightening of geopolitical tensions affecting some producing countries but that this has been balanced by ample physical oil supplies.<br/><br/>Crude oil production by countries from the oil producers' cartel Opec rose to a 14-month high of 29.2 million barrels per day in February, compared with January. During February, Iraq pumped an extra 115,000 barrels per day.<br/>