The International Energy Agency cut its forecast for growth in Chinese oil demand next year for a second month as it projected a decline in the amount of fuel oil the nation will burn to generate power.

The agency, which advises 26 industrialized countries on energy policy, expects Chinese oil demand to rise 6 percent to 7.03 million barrels a day next year. Last month, the agency said demand in China would rise 6.5 percent to 7.08 million barrels a day in 2006.