Global oil demand growth looks likely to increase more slowly over the coming months, as warmer temperatures cut consumption, which may tilt the market back into surplus in the first half of next year, the International Energy Agency said on Tuesday.
"I think this group of committed and responsible producers came together. and I think they will continue to do what it takes to take us to the next level", he said at an global oil conference.
To be sure, the IEA expects Canadian oil production to rise - to 6.2 million barrels per day by 2040 from 4.5 million bpd in 2016, 100,000 bpd more than the IEA's last report.
Oil prices held largely steady on Tuesday as the prospect of further rises in United States output offset some of the optimism that OPEC-led production cuts would tighten the balance between crude supply and demand.
Both benchmarks early in the previous week hit highs last seen in 2015, but traders said the market had lost some momentum since then.
This sentiment comes in part on the back of rising USA oil output, which has grown by more than 14 percent since mid-2016 to a record 9.62 million bpd. Though solar power is set to become the cheapest source of new electricity generation and the boom years for coal are over, oil and gas will continue to meet the bulk of the world's energy needs, the IEA said.
In Abu Dhabi on Monday, the UAE Minister of Energy and Industry Suhail bin Mohammed Faraj Faris Al Mazrouei, said that oil producers were expected to unanimously extend a production cut accord later this month, but its duration was still under discussion.
Moreover, the revision for 2018, while "not very large" on average for the full year, came mostly on the back of lower-than-expected demand in the fourth quarter, which would come 311,000 bbl/day lower.
Traders said they were cautious about betting on further price rises.
Indeed, the IEA also suggests that demand for oil will remain supported by lower prices, going forward.
"This is why, absent any geopolitical premium, we may not have seen a "new normal" for oil prices", the IEA said.
The global energy markets are in the midst of "extraordinary times", writes Fatih Birol, executive director at the International Energy Agency in its annual World Energy Outlook, launched in Paris on Tuesday.
While the IEA's base-case scenario projects oil prices reaching US$83 per barrel by 2025 and as high as US$111 by 2040, a low oil-price scenario could see prices stuck in the US$50 to US$70s if electric passenger cars take off, USA tight oil production continues to rise and upstream costs decline.