Investing.com - The IEA Thursday said higher oil prices on output cuts could encourage "leaner and fitter" shale producers.
The IEA said U.S. shale producers' productivity has improved by "leaps and bounds."
In its monthly report, the IEA also pointed to planned projects in Brazil and Canada coming onstream.
However, it highlighted recent comments by Saudi Energy Minister Khalid al-Falih on the output cut agreement.
Al-Falih said six-month OPEC, non-OPEC producers' accord to cut output by 1.8 mn bpd "unlikely" to be extended.
The IEA suggested this was aimed at capping prices to prevent "another bonanza" for high-cost producers.
It said it is still too early to gauge the level of compliance with the cuts.
The IEA cut its forecast for 2017 global oil demand growth to 1.3 mn bpd from 1.5 mn in 2016 on price and dollar gains.