The Paris-based International Energy Agency said world demand for oil would be less than previously expected due to persistently high prices and lower expectations of economic growth in advanced economies.

The IEA now expects global oil demand to reach 89.2 million barrels a day in 2011 - a rise of 1.3 million barrels a day over 2010 but 190,000 barrels a day less than last month's forecast.

Gasoline at $4 a gallon "is likely to yield an anemic U.S. driving season," the IEA said in its monthly oil market report. "This is the main change to our demand forecast - a weaker 2011 profile in North America."