In its Short-term Energy Outlook for July released last week, the Energy Information Administration revised its 2009 retail price projections for regular grade gasoline and diesel fuel higher. The EIA also throttled back its expectations for lost global oil demand this year while adjusting slightly higher the consumption rate for 2010.

The EIA elevated its 2009 price outlook for retail gasoline by 3cts and for diesel by 6cts from its June projection, expecting the U.S. gasoline average at $2.36 gal and diesel at $2.46. That compares to the $3.26 gal average for gasoline in 2008, while retail diesel fuel averaged $3.80 gal last year.

“Crude oil prices rose in June for the fourth consecutive month, in part because of stronger-than-anticipated global economic activity, primarily in Asia,” EIA reported. “Market sentiment continues to reflect expectations of an economic recovery and a future rebound in oil demand that are outweighing weak current oil consumption and high inventory levels.”

The Organization of Petroleum Exporting Countries released its annual energy outlook report on July 8, projecting global oil demand falling in 2009 by 1.4 million bpd to a total of 84.2 million bpd from 2008 levels before starting to recover in 2010.

OPEC says that in the medium-term, demand will creep up 400,000 bpd at 84.6 million bpd next year, then return to robust growth in 2011.

The cartel sees demand returning to 2008 levels at 85.6 million bpd in 2011, rising 1.1 million bpd to 86.7 million bpd in 2012, and then up another 1.2 million bpd to 87.9 million bbl in 2013.