As demand for oil picks up, the oil price is expected to recover gradually to reach US$80 per barrel in 2020, the IEA said. In the following two decades oil demand is likely to level off as governments continue to reduce subsidies and there is further momentum towards energy efficiency and alternative energy sources.
With less than three weeks to go before the crucial COP21 conference, the IEA said an ongoing policy shift was not enough to avoid the worst effects of climate change.
"There are unmistakeable signs that the much-needed global energy transition is underway, but not yet at a pace that leads to a lasting reversal of the trend of rising CO2 emissions," it said.
The world still needed a "clear and credible vision of long-term decarbonisation" to combat climate change.