UPDATE 2-EIA raises 2009 world oil demand forecast

*EIA raises 2009 world oil demand forecast 170,000 bpd

*EIA lowers 2009 U.S. oil demand forecast 10,000 bpd

*EIA raises 2009 OPEC oil output forecast to 28.63 mln bpd (Adds details about U.S. demand, OPEC/Non-OPEC supply)

WASHINGTON, July 7 - The U.S. Energy Information Administration on Tuesday once again raised its world oil demand forecast for this year on expectations of a gradual recovery in the global economy, led by stronger-than-expected growth in Asia.

In its monthly energy report, the EIA increased its 2009 global oil demand projection to 83.85 million barrels per day, up 170,000 bpd from its June estimate of 83.68 million bpd. World oil demand this year is still well below 2008 levels of 85.41 million bpd.

The agency said world growth will push consumption up to 84.79 million bpd in 2010, 380,000 bpd more than previously forecast.

Until last month, the slumping economy had prompted months of major downward revisions. The change in forecasts reflected some positive economic news from the world's largest petroleum consuming countries, including the United States and China.

"In particular, there has been stronger economic activity in Asia than was previously anticipated, and the current forecast reflects higher expected oil consumption in that region," the EIA said.

Optimism that an economic recovery could lift flagging fuel demand has helped lift crude prices from below $33 a barrel in December to more than $70 a barrel last month.

While the price gains have fueled concerns that higher energy costs could dampen any recovery, oil has fallen back to around $63 a barrel due to weaker economic data, including last week's grim jobless data.

"The downside price risks of this forecast are a delayed or weaker-than-expected global economic recovery, ample global surplus production capacity, and high commercial inventories," the EIA said.

The agency actually lowered its 2009 U.S. oil demand forecast by 10,000 bpd to 18.85 million bpd from 18.86 million bpd in a previous forecast. U.S. consumption for 2010 was still set to rise to 19.16 million bpd, however, unchanged from last month's estimate.

Separately, U.S. gasoline consumption was forecast to rise in 2009 to 9 million bpd from the 8.99 million bpd in the previous forecast.

U.S. highway travel rose slightly in April after 16 consecutive months of declines, the U.S. Transportation Department said in June.

On the supply side, the agency raised its forecast for OPEC oil production this year to 28.63 million bpd from its prior estimate of 28.49 million bpd.

"Substantial surplus production capacity, located mostly in Saudi Arabia, should help moderate upward price pressure until higher demand begins to erode the global supply cushion," the agency said.

The EIA lowered its forecast for non-OPEC oil output this year to 50.14 million bpd from its previous projection of 50.15 million bpd.