The coordinated release last month of some 60 million barrels of emergency oil will mean industrialized nations won’t have to dip as deep into their commercial oil stocks for the rest of this year, the US Energy Information Administration said in its short-term outlook.

Western nations will draw down their commercial oil stocks by 71 million barrels during the second half of this year, much less than 127 million barrels previously forecast, the EIA said.

But, “EIA still expects oil markets to tighten as growing liquid fuels demand in emerging economies and slowing growth in non-OPEC supply maintain upward pressure on oil prices,” the agency said.

EIA said it expects West Texas Intermediate oil prices to average $98 a barrel in 2011, down from its previous forecast of $102 a barrel, but about 24 percent higher than last year.

In 2012, oil prices are expected to average $103 a barrel, down from the $107 a barrel forecast projected in last month’s report.

Saudi Arabia has boosted its oil output, raising its June production to 9.5 million barrels per day in June from 8.9 million bpd in May, the EIA said.

Global oil demand will increase this year and again in 2012, but not has much as the EIA had previously thought.

The agency cut its forecast for 2011 world oil demand growth by 270,000 bpd to a 1.43 million-bpd increase this year. Oil demand in 2012 will rise about 1.58 million bpd, about 10,000 bpd lower than the agency forecast last month.

In the US, which is the world’s biggest oil consumer, oil consumption is expected to increase by just 30,000 bpd this year, down sharply from the 150,000 bpd growth previously estimated.

The EIA said the low 0.2 percent growth in 2011 fuel demand was due to a weak economic growth and high gasoline prices.

US oil demand in the third quarter is forecast to be 60,000 bpd less than a year earlier, but fuel consumption will rebound in the fourth quarter and increase by 110,000 bpd over the same period last year, the agency said.

Earlier on Tuesday, OPEC said world oil demand would grow more slowly in 2012 because of a fragile global economy and deepening decline in consumption in Europe.