Oil is currently trading at around half of last June's price, making it harder for countries and companies which produce the commodity to make a profit.
Despite the low price, some producers have continued to ramp up supply, with Saudi Arabia – OPEC's biggest oil exporter – betting that lower prices will make more-expensive U.S. shale gas production less economically viable.
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Some of the smaller Middle Eastern producers are feeling the impact of low prices, however.
Iranian Oil Minister Bijan Zanganeh called on OPEC to cut production quotas by "at least 5 percent" on Tuesday, according to the country's Oil Ministry website.
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It comes after major global powers agreed a framework deal with Iran over its nuclear program, leading to fears of further oversupply in the oil market if sanctions on Iran are lifted.
Given this uncertainty, the IEA warned that it could be some time before the oil price recovers.
"Advances in talks on Tehran's nuclear program not only call into question past working assumptions on future Iranian output, but may already have encouraged other producers to hike supply and stake out market share ahead of Iran's potential return," the agency said in its report.
"All in all, that suggests the market rebalancing may still be in its early stage."