UPDATE 1-BP says oil to be slowest-growing fuel to 2030

* Sees world oil demand reaching 103 million bpd by 2030

* Oil continues to lose market share in next two decades

* High prices, technology, policies to curb oil demand (Adds details)

By Alex Lawler

LONDON, Jan 18 (Reuters) - World oil demand will rise by 18 percent from 2010 levels to 103 million barrels per day (bpd) by 2030, making it the slowest-growing fuel in the next 20 years, BP Plc said on Wednesday.

BP, in its Energy Outlook 2030, said higher prices were among the factors expected to restrain oil demand as well as a gradual move towards market rather than subsidised fuel prices in emerging economies.

The report is a further illustration of the decline in long-term oil demand estimates in the last few years, coinciding with higher prices. Oil hit a record high of $147 a barrel in 2008 and remains well above $100.

"Oil, the world's leading fuel today, will continue to lose market share throughout the period," BP said in a statement.

Even so, the world still needs to bring on enough oil, biofuels and other liquids to meet a forecast demand increase of 16 million bpd by 2030 and replace falling output from existing sources, BP said.

This is the second year BP, a publisher of benchmark energy statistics for 60 years, has issued its long-term energy outlook. As recently as 2007, the International Energy Agency expected the world would need 116.3 million bpd of oil by 2030.

Demand growth will come entirely from outside developed countries of the Organisation for Economic Co-operation and Development, BP said, although a lifting of fuel subsidies is expected to be among the factors that will restrain demand.

"Overall, consumption growth will be constrained by stronger crude oil prices seen in recent years, technological advances, a range of new policies, and the continued, gradual reduction of non-OECD subsidies," BP said.

China and India will become the world's largest- and third-largest economies and energy consumers by 2030, BP said. The United States is currently the world's biggest economy and oil consumer. (Reporting by Alex Lawler; Editing by Alison Birrane)

Wed Jan 18, 2012 6:52am EST