Oil prices rose to five-week highs after Friday's reports of US -ordered airstrikes against Syrian infrastructure, followed by production outages from Libya's largest oilfield, and late-breaking news on Tuesday that suggested Saudi Arabia would support OPEC production cuts.
Gross U.S. crude oil imports in 2016 rose to an average of 7.9 million barrels per day (b/d), 514,000 b/d more than the 2015 average.
"New data shows weaker-than-expected growth in a number of countries including Russia, India, several Middle Eastern countries, Korea and the US, where demand has stalled in recent months", the agency said.
The EIA also lowered its crude-price forecast, with West Texas Intermediate crude seen at an average $52.24 a barrel, and Brent crude at $54.23 in 2017, down 2.3% and 0.7% from last month's forecast, respectively.
Benchmark Brent crude futures were down 1 cent at $55.85 a barrel at 0907 GMT.
OPEC members have previously said they lean toward oil cut extensions, as long as non-members are also involved.
OPEC reduced its output to around 1.2 million barrels per day from the beginning of January and for six months - the first curb in eight years - to get rid of excess supply.
Oil prices shed earlier losses and moved slightly higher on Thursday after an energy watchdog said the market is "very close" to a balance after years of oversupply.
The IEA trimmed its oil demand growth forecast for 2017 by 40,000 barrels per day and warned that its revised level of 1.3 million barrels per day "could prove optimistic".
Demand for oil from OPEC is seen growing by 600,000 bpd from 2016, to 32.2 million barrels daily.
After dropping to $47 a barrel about 10 days ago, WTI oil prices closed above $53 a barrel Monday night.
"The weakness in the market is concerning, seeing that USA production alone can offset a number of encouraging news", said Michael McCarthy, a chief strategist at CMC Markets.
But OPEC revised up its estimate of oil supply growth from producers outside the group this year to 580,000 bpd, as higher oil prices following the supply cut help spur a revival in US shale drilling.
With demand expected to rise by 340,000 bpd in 2018, that would leave increasing amounts of US oil for export or storage.
"Upward revisions were seen in Russia's production due to the approval of production ramp ups from the three new projects started up a year ago including Filanovsky in the Caspian", the OPEC said.
In last month's OPEC report Saudi Arabia had posted numbers showing it raised output above 10m bpd in a move that briefly unnerved markets, before the kingdom issued a rare statement to explain the output increase was aimed at replenishing domestic inventories, rather than an attempt to increase exports.
However, prices are dragged down by information from the United States, where both production and inventories are rapidly growing.