A huge overhang in oil stocks lingering across the world will keep a cap on any further oil price rises, the IEA said Tuesday, even as supply and demand move towards balance by the end of the year.

Global demand for oil is steadily rising thanks to solid economic growth, and supply has been curbed by unexpected production cuts due to wildfires in Canada and rebel attacks in Nigeria, as well as falling US shale production, the International Energy Agency said in its monthly oil market report.