The revised forecast is mostly due to expectations of slower economic growth rather than buyers switching from gas to coal, oil or renewable energy.
After supply fell by nearly one million barrels per day in April, losses could widen to three million barrels per day in the second half of the year, the agency said.
"In the absence of stronger policies, the amount of renewable power capacity added worldwide is expected to plateau in 2023," the IEA said.
Warming can be kept just below 2 degrees Celsius if all Paris Agreement pledges are fulfilled: Study
Currently, there’s a huge gap between the rhetoric on tackling climate change and the reality on the ground.
Brent Crude futures was trading at $99.98 per barrel, down by 1.07% while WTI was trading at $95.61 per barrel, down by 0.44%.
The board of the Paris-based IEA made the decision at an extraordinary meeting of energy ministers chaired by US Energy Secretary Jennifer Granholm.
ICRA Head (Research and Outreach) Rohit Ahuja said that these sectors together emit 90 per cent of carbon dioxide as per 2019 data of the International Energy Agency.
At the end of November, the Organization of Petroleum Exporting Countries agreed to cut output by 1.2 million barrels per day (bpd) from January 1, initially for a period of six months.