World demand for Opec's oil will be stronger than expected next year, the producers group said today, the latest sign that a more positive economic outlook will boost oil consumption.

The 12-member group is the latest forecaster to lift its oil demand estimates in the past week, following upward revisions from the International Energy Agency and the US government's Energy Information Administration.

Demand for Opec crude will average 28.39 million barrels per day next year, a 300,000 bpd rise on its previous forecast, the group said in its monthly report.

"The world economy now appears to be entering into a new phase, moving from a period of containing the crisis to one of economic recovery," Reuters quoted the report as saying.

Opec also raised its forecast for world oil demand growth in 2010, seeing an increase in world oil use of 700,000 bpd, up 200,000 bpd from the previous estimate.

Since September last year, Opec has been holding down its production as the recession eroded demand. The group agreed to keep supply curbs of 4.2 million bpd at a meeting on 9 September.

However, in its report, Opec admitted that output was rising, despite the agreement.

In September, supply from the 11 Opec members subject to output targets rose to 26.42 million bpd. It next meets to decide its oil output policy in December.

While seeing a more positive economic outlook, Opec also sounded a note of caution.

"Given weak oil market fundamentals as reflected in high global inventories and large Opec spare capacity, there is a need for continued close monitoring of both economic conditions and developments in the oil market," the news agency quoted the report as saying.