Global oil demand has started to grow after falling for a year-and-a-half, the International Energy Agency said yesterday, in a sign that Asia's economic revival is boosting commodities consumption.

The return of fuel consumption growth comes as oil prices surge to $75-$80 a barrel, up almost 70 per cent from January, prompting policymakers to worry about the impact of the rise on econ- omic activity and inflation.

In its monthly report, the western countries' oil watchdog said: “The recent price spike, if further extended, risks derailing the recovery.” But it noted that current prices appeared to be justified by a mix of supply and demand fundamentals and a “heady brew of loose monetary policy, surging equities and a weaker dollar”.

The IEA explained that oil consumption in developing countries, led by China, was now “exceeding expectations”, while “the pace of demand contraction is easing” in rich countries. “This would suggest that global demand is well on track for resumed year-on-year growth in the fourth quarter, for the first time since the second quarter of 2008,” the report said.

But the Paris-based body warned that the growth followed the sharp fall in oil consumption from its late-2007 highs “in the face of a game-changing economic recession”.

The new forecast is likely to weigh on Opec's meeting next month in Luanda, Angola, where the oil cartel will review its production policy ahead of the northern hemisphere winter.