LONDON (AFP) - Oil prices rose on Tuesday to stand above 134 dollars a barrel as traders digested a warning from the International Energy Agency that soaring crude costs would dampen oil demand growth in 2008. New York's main oil futures contract, light sweet crude for July delivery, won 30 cents to 134.65 dollars per barrel. The contract had surged to a lifetime high of 139.12 dollars last Friday, when it won a record-busting $10.75 in just one day's trade. Elsewhere on Tuesday, Brent North Sea crude for July delivery added 30 cents to reach 134.21 dollars, after hitting an historic peak of 138.12 last Friday. "Oil prices were fairly flat (on Tuesday) ... after the IEA cut their demand growth forecast for the fifth consecutive month," said analyst Nimit Khamar at the Sucden brokerage in London. "However the impact of the reduction was offset by their expectations for slower supply growth." "The IEA cut demand growth by 80,000 barrels a day from last month's forecast, to its lowest growth level since 2002 amid the slowdown in the US economy and as a result of reduced fuel subsidies in some Asian economies," added Khamar. "However, this reduction in oil demand was overshadowed by IEA's reduced forecasts for non-OPEC growth to 455,000 barrels per day. , down from their previous forecast of 680,000 barrels a day." Some analysts suggest that the $140 price was a bubble that could burst, while others argue that oil could soon smash through $150 amid fears about tight supplies and fervent demand from China and India. Meanwhile, Iran on Tuesday gave a cautious welcome to a Saudi call for talks with consumer nations on soaring oil prices, saying it could be useful long as the meeting examined the root causes of high prices. "It could be useful if we delve into the root cause of the market problems," Iran's envoy to the OPEC, Mohammad Ali Khatibi, told AFP. "They (major oil consumers) should change their approach to solve the problems instead of threatening confrontation and using levers such as sanctions and occupation." Crude futures slid Monday from last week's record heights after OPEC kingpin Saudi Arabia, the cartel's biggest producer, called for talks with consumer nations to discuss ways to deal with skyrocketing oil prices. Prices were also dampened by the recovering greenback, which makes dollar-priced oil more expensive for foreign buyers, after US Federal Reserve chief Ben Bernanke added to US rate hike speculation on Monday. OPEC has repeatedly brushed aside international calls to pump more crude, arguing that current record-breaking prices have been fuelled by speculators and the weak dollar.