The OPEC also raised the oil demand outlook for 2017 by 90,000 barrels daily to 95.41 mln barrels per day (up 1.15 mln barrels daily).
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The price of crude oil settled at around $45 per barrel in August, as oversupply eased and demand growth weakened, the IEA said.
WTI is now trading at $41.5 per barrel and Brent at $2.4 per barrel premium.
The prices for Brent and WTI stood at $52.32 per barrel and $48.67 per barrel, respectively, in 2015, said the EIA.
The renewed concerns come shortly after there was speculation that members in and outside of OPEC could come together to work towards output freezes in an effort to reduce the current oversupply of oil that continues to weigh on oil prices.
International Brent crude oil futures were trading at $46.40 per barrel at 0536 GMT, up 36 cents, or 0.8 per cent, and earlier hitting a three-week high at $46.66.
Crude oil fell today, hit by record Saudi Arabian output, improved prospects for US output and a glut in refined fuel.
Oil prices fell on Thursday as a build in United States crude inventories and record Saudi Arabian production reinforced fears of a persistent supply overhang that will last well into next year and keep weighing on markets.
“Some momentum will be lost in 2017 due to downgrades in economic growth projections, but the forecast expansion of 1.2 million b/d is still above-trend”, the Paris-based agency said in its closely watched monthly oil market report.
“Opec crude oil output rose by 150,000 bpd in July to 33.4 million bpd – holding at an eight-year high – as Saudi Arabia produced at the highest ever and Iraq pumped harder”, the IEA said. In North and South America alone, crude production is projected to fall by 700,000 barrels a day in the third quarter of 2016, compared with the first quarter.
Brent crude, the global benchmark, climbed 0.87 per cent to $46.44 in early trading in London – although its USA counterpart, West Texas Intermediate, was at $43.90, 0.94 per cent higher.
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Traders said a drop of 8.1 percent in China’s oil output in July, to a five-year low of 16.72 million tonnes, also lifted prices because it would mean Asia’s biggest economy has to import more crude.
