Crude oil futures for November ended up $0.37, or 0.5%, at $71.34 a barrel.
With Brent crude prices now "established" above $80/b, "expensive energy is back, with oil, gas and coal trading at multi-year highs, and it poses a threat to economic growth", the IEA said.
Oil markets look "adequately supplied for now" after a big increase in production over the last six months but the oil industry is coming under strain as it copes with increasing global demand, the West's energy watchdog said on Friday.
The IEA report is the latest government assessment to predict weaker demand ahead and conclude that supply is adequate.
Both global oil demand and supply are now close to new, historically significant peaks at 100 million barrels per day, and neither show signs of ceasing to grow any time soon, according oil oil market report issued by the IEA.
Oil pared a weekly loss as investor focus shifted from broader market turmoil spurred by a plunge in US equities and returned to looming shortages from Iran's dwindling exports. Iranian oil exports in September fell to 1.63 million bpd, down 800,000 bpd from recent 2Q18 peaks, the agency estimated. USA crude added 71 cents to $71.68.
The drop has come as rising production from Canada's oil-sands overwhelms the nation's pipeline capacity, and as refinery capacity in the USA dwindles amid planned maintenance. The Organization of the Petroleum Exporting Countries (OPEC) made a similar move on Thursday.
So far, indications that the global crude market is more resilient than some analysts think include: US producers resuming operations nearly immediately after Hurricane Michael; the Organization of the Petroleum Exporting Countries boosting output and promising the ability to produce much more; Saudi Arabia claiming it already has set itself up to cover any Iranian shortfalls; and Russian Federation along with other non-OPEC countries gearing up to produce in record volumes. On Thursday, crude oil futures ended down $2.20, or 3%, at $70.97 a barrel, after having shed 2.4% a session earlier.
The output increase from the second quarter was led by OPEC, which boosted production by 500,000 barrels a day, and the Americas, which saw a rise of 400,000 barrels a day. On Thursday, the Energy Information Administration reported a 6 million barrel increase in crude inventories from the previous week.
Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least.