"Oil cut earlier losses and rose towards its highest level this year on Wednesday, after a drop in USA crude inventories and as the prospect of the loss of Iranian supply added to concerns over the delicate balance between consumption and production".
Oil prices fell on Thursday, reversing some of the strong gains from the previous session, as economic concerns raised doubts about ongoing fuel demand growth.
Benchmark Brent crude oil was down 65 cents a barrel at $79.09 by 1200 GMT.
Global demand will hit a high of 100.3 million bpd in the final quarter of this year, before moderating to 99.3 mln bpd in the first quarter of next year, the agency said.
Impending US sanctions on Iran have started forcing buyers to shun imports from the Islamic republic before a November deadline.
"If Venezuelan and Iranian exports do continue to fall, markets could tighten and oil prices could rise without offsetting production increases from elsewhere", the Paris-based EA said in its monthly report.More news: Poland suggests 'Fort Trump' as US weighs military base
Saudi Arabia, the world's top crude oil exporter, and other producers from the Middle East and Russian Federation have increased exports after a June meeting where they agreed to raise output by 1 million barrels per day.
The lender's revised outlook for crude coincides with a similar move by the US Energy Information Administration, which also raised its price outlook on Tuesday. Rising output in Libya, Iraq, Nigeria and Saudi Arabia is offsetting declines in Iran, which faces new US sanctions on exports, and in Venezuela. "The last couple of weeks have seen the expected squeeze on Iranian crude flows taking shape, with overall outflows down markedly", consultant JBC Energy said.
"But we are clear that these are commercial decisions-dependent on how competitively oil is priced and on the requirements of our refineries", said the official.
The institute reported a slight draw of 1.2 million barrels in the oil inventories for the previous week.
Novak said global oil markets were "fragile" due to geopolitical risks and supply disruptions, but added his country could raise output if needed. Iranian oil exports should go from about 2.7 million bpd-2.8 million bpd from earlier this year to about 1 million bpd-1.2 million bpd by the end of this year, Sen told CNBC earlier this month.
Crude prices were also pushed up by Hurricane Florence offshore the United States amid surging demand for gasoline and diesel.