* IEA cuts demand outlook, contrasts with OPEC, EIA

* G20 meeting this week eyed for currency view

* Easing Iran tensions keep prices subdued

* North Korea tests, reactions closely watched

* Coming up - U.S. retail sales at 1330 GMT

(Updates prices, adds quote, IEA Iran comment)

By Simon Falush and Dasha Afanasieva

LONDON, Feb 13 (Reuters) - Oil prices were little changed on Wednesday after the International Energy Agency (IEA) cut its demand outlook, tempering optimism on the global economy which helped push oil to its highest in nine months last week.

Front month Brent futures LCOc1 were 7 cents up at $118.73 a barrel at 1255 GMT having touched a session high of $118.96 before the release of the IEA report, not far off a nine-month high of $119.17 hit last week. U.S. crude futures CLc1 gained 41 cents to $97.92.

A cut in the demand outlook from the IEA of 90,000 barrels per day saw a slight retreat in prices after Tuesday's more bullish reports from the U.S. Energy Information Administration (EIA) and Organization of the Petroleum Exporting Countries.

ID:nL5N0BD3CL

However there were some bullish signals in the report, which said Iranian oil output will likely fall further from its lowest in three decades as the West tightens sanctions on the Islamic Republic.

"The things that have been keeping oil in the upper range are cold weather... and the success of sanctions to Iran." Christopher Bellew, oil trader at Jefferies Bache.

The IEA's downbeat prognosis for 2013 contrasted with that of OPEC which said oil consumption will rise by 840,000 bpd this year, 80,000 bpd more than expected. ID:nL5N0BCCKK

The EIA also increased its forecast for demand growth, by 110,000 bpd to 1.05 million bpd in 2013, taking global demand to 90.2 million bpd this year. ID:nL1N0BC86I

However many analysts think that the recent run up in Brent crude, which has seen it rise 6.6 percent this year to its highest since May, is unsustainable.

"I'm surprised by the gains, the fundamentals don't justify them, we have seen demand forecasts cut and oil should be $8-$10 lower" said EGL analyst Andy Sommer in Dietikon, Switzerland.

Investors are also taking cues from currency markets, which were awaiting a meeting of G20 finance ministers and central bankers this week amid increasing international tensions over the euro's strength and the yen's weakness.

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World oil demand outlook: http://link.reuters.com/nut85t

US crude 24-hr chart: http://link.reuters.com/sus85t

Brent 24-hour chart: http://link.reuters.com/tus85t

For a table of OPEC nations' production: OPEC/SURVEY

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U.S. DATA

U.S. crude inventory may have risen last week as refineries head into maintenance in the world's biggest oil consumer, but an expected cut in imports may negate the impact in coming weeks. Crude stocks may have risen 2.4 million barrels in the week to Feb. 8, a Reuters poll showed. EIA/S

Traders are also eyeing euro zone industrial output and U.S. retail sales data due later in the day for more cues.

Hints that tension over Iran's disputed nuclear programme may be easing also helped keep prices in check.

Iran acknowledged it was converting some of its higher-grade enriched uranium into reactor fuel, a move that could help to prevent a dispute with the West over its nuclear programme hitting a crisis in mid-2013. ID:nL5N0BC402

(Editing by James Jukwey)

((simon.falush@reuters.com)(+44 2075427681)(Reuters Messaging: simon.falush.thomsonreuters.com@reuters.net))

Keywords: MARKETS OIL/