The International Energy Agency increased its forecast of global oil demand for this year and next on Thursday.

The agency, which advises 28 nations, is now predicting world demand to come in at 84.5 million barrels a day in 2009, it said in its monthly oil report. That's less than the amount used in 2008, before the full effects of the economic downturn had been felt but roughly 500,000 barrels more than it was previously predicting.

An oil derrick is shown in Saskatchewan. After a slump during the last year, the International Energy Agency increased its forecast of global oil demand for 2009 and 2010 on Thursday. (CBC)

The agency also predicts global demand to hit 85.7 million barrels a day next year, a 1.5-per-cent increase over its new 2009 forecast.

The agency cited increased consumption in China and the United States in justifying the hike. It's the second straight month that the agency has slightly increased its demand forecast.

On Wednesday, the Organization of Petroleum Exporting Countries met in Vienna to discuss output levels and price targets. "Discussions on better compliance [are] seemingly more likely than a further target cut," the IEA said of the OPEC meeting.

The fractious group often struggles to adhere to its self-imposed targets. It has a stated target of producing 4.2 million fewer barrels per day this year, in an attempt to boost crude prices. But OPEC nations produced 26.3 million barrels per day in August, 1.4 million barrels more than its own target, the IEA noted in its report.

The IEA did not alter its estimates of output from non-OPEC nations in 2009 and 2010. Non-OPEC nations are expected to produce 51 million barrels per day in 2009 and 51.5 million barrels per day next year.