IEA's Fatih Birol told Reuters that oil prices could not be expected to rise significantly under "normal conditions" although unexpected developments, such as rising instability in Iraq, could alter the situation.
Two major oil fields in southwest Libya began shutting down on Jan. 19 after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level.
The terms of the trade deal imply an absolutely massive increase in Chinese imports of U.S. energy, and if this actually comes to pass, it will have serious disruptive effects across global markets.
Quantities were not specified in the accord and analysts were unclear how quota sales will work.
Crude oil once again takes center stage with WTI spiking to a three-month high after recent events renewed tension in the Middle East.
OPEC expects lower demand for its crude oil in 2020 as rival producers grab market share and the U.S. looks set for another output record.
Speaking during the opening day of IPTC, Bahrain Oil Minister Sheikh Mohammed bin Khalifa Al Khalifa also said he sees producers challenged by rising energy demand in the future.
China, which is increasing its influence in the region and buys 50%-70% of Iranian oil exports, would be opposed to any interruption of energy flows through the Strait of Hormuz.