North American supplies are likely to have a longer-term impact on oil prices as well. Several analysts have noted that just as Chinese demand has been seen as a major factor in the oil price rise over the last few years, the North American supply picture should keep a lid on oil price gains . As a result of the new North American supply, OPEC should have little ability to increase output without reducing prices, the IEA noted.
(Read More: Power Shift: Energy Boom Dawning in America)
This "supply shock" led by U.S. tight oil drilling and Canadian oil sands will "cascade through global energy markets," IEA said."The shift will not only cause oil companies to overhaul their global investment strategies, but also reshape the way oil is transported, stored and refined," it noted.
The report also said rising oil shale production in the U.S. will help meet most of the world's new demand in the next five years. The drilling technology used in the U.S. should help increase production in older fields, but it is not expected to be used in a large-scale way outside North America in the next five years. The U.S. should overtake Russia as the biggest non-OPEC producer by as early as 2015.
The IEA expects global oil demand to increase 8 percent on aggregate between 2012 and 2018,reaching 96.7 million barrels per day. It said the demand will be met by mostly non-OPEC production, which is expected to grow by more than 10 percent between 2012 and 2018 to 59.31 million barrels per day.
However, the fact that the North American oil supply boom is changing the global landscape is well-known, and several analysts said it was not the only driver of prices Tuesday. Equity markets and the dollar also have had a major impact on oil price moves.
(Read More: GLOBAL MARKETS-Shares fight back, oil slides as dollar momentum returns )
—By CNBC's Sharon Epperson; Follow her on Twitter: @sharon_epperson