World demand for crude oil in 2008 will grow less than previously expected as the US economic slowdown reduces the pressure on the Organisation of the Petroleum Exporting Countries to raise its output in response to high oil prices.

The International Energy Agency, the western countries' energy watchdog, yesterday lowered its forecast for growth in oil demand to 2m barrels a day, 130,000 b/d less than estimated in December, although far above last year's rise of 1m b/d.