The International Energy Agency (IEA) released its monthly Oil Market Report on Tuesday. The agency said that the oil market would rebalance in the second half of the year.

The IEA noted that global oil supply decreased by 950,000 barrels a day to averaged 95.4 million barrels a day in May compared with May 2015.

The agency upgraded its global oil demand forecast for 2016 by 100,000 barrels a day to 96.1 million barrels a day.

According to the IEA, OPEC production decreased by 110,000 barrels a day to 32.61 million barrels a day in May compared with the previous month. The increase was driven by higher output from Iran, Iraq and the United Arab Emirates.

Iran's rose by 80,000 barrels a day to 3.64 million barrels in May. It was the highest level since June 2011.

The IEA expects non-OPEC output to drop by 900,000 barrels a day to 56.8 million barrels in 2016.