The IEA released its five-year oil markets outlook Monday, which predicted that "the United States dominates oil supply growth" in the near term as the country's production rises by 28 per cent to 17 million barrels per day by 2023.
Rising output from the United States alone will cover 80 per cent of the world's demand growth over the next two years, according to the IEA's five-year oil market forecast.
The shipments are significantly higher than the current record of 179,000 barrels a day reached in September 2014 before oil prices collapsed. According to the agency, further growth is possible in the next few years if restrictions envisaged by the agreement are lifted and new projects are launched.
Oil prices rose Monday, supported by reports of supply disruptions in Libya over the weekend.
However, according to the International Energy Agency (IEA), more investment will be needed to boost output after this time.
Venezuela's oil production fell 13 percent in 2017 to a 28-year low of about 2.072 million bpd. That was the year before the price for oil in the US surged close to $150.
Dr Fatih Birol, Executive Director of the IEA, said: "The US is set to put its stamp on global oil markets for the next five years". "Without large-scale capital investment, the US domestic market can only absorb about a quarter of the additional four million b/d of USA crude expected to enter markets [by] 2023, leaving the rest for exports", Wood Mackenzie said.
Along with surging output from the USA, rising production in Canada, Brazil and Norway will be able to meet higher demand through 2020, the energy policy adviser said.
Oil prices, which were flat earlier in the day, started rising along with USA stocks.
But prices were still supported as market participants were eyeing an upcoming meeting between OPEC oil ministers and USA shale firms scheduled later Monday in Houston for the largest energy industry conference, CERAWeek. The rebound, however, also spurred more drilling in the USA, where operators found success in shale formations stretching from Texas to North Dakota to the Northeast.
Ecuador's Perez also downplayed the impact of USA shale production on global crude markets, noting that shale fields tend to have lower total oil recovery than conventional fields. Essentially all the forecast gains in OPEC production will come from the cartel's Middle East members.
Birol said, however, that his group sees no sign that demand for fossil fuels will peak - or even plateau - in the next five years.