pumpjack oil

The world continues to pump out more oil than it needs, to the tune of about 2 million barrels a day the IEA said Tuesday. (Sergei Karpukhin/Reuters)

The International Energy Agency says oil supply is set to outpace demand this year, keeping a lid on any expected price increases.

The organization, which advises countries on energy policy, said in its monthly report Tuesday that global excess supply may reach 2 million barrels per day during the first quarter, and a further 1.5 million barrels a day in the second quarter. Further stock-building of 300,000 barrels a day is forecast in the second half of the year.

The IEA said "if these numbers prove to be accurate, and with the market already awash in oil, it is very hard to see how oil prices can rise significantly in the short term."

After heavy losses Monday, the U.S. benchmark for crude was up 61 cents at $30.30 a barrel.