Global demand for oil is expected to increase by 1.7 percent in 2010 as the economy rebounds, CNNMoney.com reported.

“Buoyant economic activity in more oil-intensive emerging countries” will bolster demand in 2010, according to the Paris-based International Energy Agency’s (IEA) monthly oil market report. Next year’s economic outlook, however, “is still fraught with uncertainty.”

Amid speculation that the Federal Reserve could tighten monetary guidelines to fend off inflation as the economy recovers, prices of crude oil for November delivery were down 60 cents to $71.09 a barrel.

“My colleagues at the Federal Reserve and I believe that accommodative policies will likely be warranted for an extended period,” Federal Reserve Chairman Ben Bernanke said Thursday. “At some point, however, as economic recovery takes hold, we will need to tighten monetary policy to prevent the emergence of an inflation problem down the road.”

Crude oil prices swelled more than $2 per barrel in the previous session as the dollar dropped to a 14-month low. But as the dollar strengthens, commodities priced in dollars would become more expensive for overseas buyers.

According to the IEA, worldwide oil demand in 2009 is expected to average 84.6 million barrels per day, up 200,000 barrels per day from September’s forecast. However, overall consumption this year is still expected to be down 1.9 percent from 2008.