"The downward adjustment of growth is mainly due to lower economic expectations in 2019", according to the cartel in his study.
USA crude production rose by more than 2 million bpd past year, to 11.9 million bpd, making the United States the world's biggest oil producer. This is the result of a combination of the OPEC-led production cuts and the sanctions against Venezuelan exports, which are supportive for Brent crude oil, and the rising USA production, which is helping to limit gains for WTI crude oil.
The IEA increased its forecast of 2019 USA oil production by 250,000 barrels a day compared with what it foresaw a month ago.
The growth, led by U.S. shale oil output, has built up global inventories of crude and refined products.
U.S. West Texas Intermediate (WTI) crude oil futures were at $52.69 per barrel at 0751 GMT, up 28 cents, or 0.5 percent, from their last close.
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Brent oil jumped to an 8-day high of $63.32 per barrel yesterday after the Organization of the Petroleum Exporting Countries (OPEC) said that it had cut its output by nearly 800,000 barrels per day in January to 30.81 million barrels per day.
Oil prices fell by more than 1 percent on Monday as U.S. drilling activity picked up and as a refinery fire in the USA state of IL resulted in the shutdown of a large crude distillation unit.
The possible extension of the White House's March 1 deadline on tariffs increased investor optimism that the world's two largest economies can resolve their trade spat, boosting stocks around the world.
The IEA said it expected global oil demand this year to grow by 1.4 million bpd, while non-OPEC supply will increase by 1.8 million bpd.
As a result, Morgan Stanley said "low refining margins and weaker economic data means oil prices can rally only so much (and) we continue to see modest upside for Brent to $65 per barrel in the second-half (of 2019)". A high-level US delegation led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will hold talks on Thursday and Friday with Chinese Vice Premier Liu He, the top economic adviser to President Xi Jinping.