The Paris-based organisation, which advises 28 governments on energypolicy, moderated its prediction on oil demand to growth of 795,000 barrelsper day this year to 90.6 million barrels per day.

The IEA said it expected OECD demand to contract by 480,000 barrels perday, the bulk of which stemmed from a 340,000-barrel-a-day demand drop inEurope.

However the report said growth of 1.28 million barrels per day elsewherecompensated for the fall.

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