The global oil market is stabilising after years of turbulence, but significant further price gains are unlikely, the International Energy Agency said in its latest report.

The Paris-based agency nudged up its estimate for global oil demand this year to 96.1 million barrels a day, up 0.1 million barrels from the previous prediction.

The monthly report, released Tuesday, notes that there are large volumes of production that are affected by shutdowns, particularly in Nigeria and Libya.

When that oil starts returning to market, it will boost supply. Inventories are also high globally after three years of overproduction.

The IEA says "this is likely to dampen prospects of a significant increase in oil prices.”

The price of oil was down Tuesday, with the Brent benchmark down 71 cents at $49.64 a barrel.

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