Global oil supply dropped to a nine-year low of 86.9 million barrels a day last month as OPEC+ delivered all the curbs it promised, while investment cuts and reduced drilling hit output from the USA and Canada.
The agency's outlook on oil has typically been dour over the past few years, putting it at odds with the Saudi-dominated OPEC- or Organization of the Petroleum Exporting Countries - whose members are determined to keep crude prices supported under any condition.
Oil prices fell on Friday, adding to steep losses from the previous session, and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere would suppress fuel demand.
In the US, Florida has registered a state record of 15,299 new coronavirus cases in 24 hours - around a quarter of all of the United States' daily infections.More news: Lenovo's Legion gaming phone to launch on July 22: Details here
New spike in fatalities are the largest in the two most populous states, California and Texas.
Some like ABN AMRO analyst Georgette Boele are already looking beyond $1,900 for gold, seeing for 2021 prices around $2,000 an ounce.
On Friday, both U.S. and UK crude futures scheduled to be expired on July 20 surged as much as 2 per cent after the Paris-based International Energy Agency (IEA) had boosted up its 2020 demand forecast for crude oil, nonetheless, a record spike in pandemic cases in the United States had been curbing out demand outlook, eventually weighing on the crude oil futures' prices despite a robust turnaround in industrial activities of the bloc and China.
Brent crude fell 32 cents, or 0.7%, to $42.92 a barrel by 0646 GMT while U.S. West Texas Intermediate crude was at $40.22 a barrel, down 33 cents, or 0.8%.More news: AELTC to distribute 2020 Wimbledon prize money among 620 players #123070
London-traded, the global benchmark for oil, settled up 92 cents, or 2.1%, at $43.27. The real-time indicator of bullion prices scaled $1,809.22 earlier on Thursday, a peak since September 2011, when it hit a record high of $1,920.85.
Total exports, including those from the Kurdish region, declined 11.4% to 3.218 million b/d from 3.633 million b/d in May, according to the SOMO data.
"While the oil market has undoubtedly made progress ... the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is nearly certainly to the downside", the IEA said in its monthly report. A slate of economic data, including a record monthly payrolls addition, pointed to a revival in US business activity in June.More news: Toronto, Edmonton to host National Hockey League season