World oil demand will rise less than expected in 2008 because of record prices and slower growth in the United States and elsewhere, the International Energy Agency said on Tuesday.
Consumption will rise by 1.03 million barrels per day (bpd), 230,000 bpd less than the previous forecast, the IEA said.
The agency has more than halved its estimate from 2.2 million bpd in July 2007 and may cut it further.
"This report sees further downward adjustments to demand, and they may not be the last," said the IEA, adviser to 27 industrialized countries, in its monthly Oil Market Report.
The report adds to evidence that record-high prices are slowing oil use in the industrialized world and also signals pressure on demand in some emerging countries. Sustained weakness in European consumption could prompt the IEA to lower its demand forecast further.
Nonetheless, oil hit a record $126.40 a barrel on Monday.
That leads to our Fast Money Reader Poll. Do you think slowing demand for oil will push prices below $100?
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IEA Cuts World Oil Demand Forecast, May Trim More
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