According to the IEA's monthly oil market report, global growth in the market will hit 900,000 barrels a day next year, 230,000 fewer than previously expected.
As a result of the report, Brent Crude fell 43 cents to $63.25 a barrel, while US WTI Crude dropped 67 cents to $59.28.
The $1bn question is how falling prices will affect the market. Although consumers are expected to have more spare cash and companies in oil-reliant industries, such as airlines, are expected to benefit, the IEA suggested the stimulus effect of falling prices "may be modest".
Antoine Halff, the report's author, pointed out "the global economy remains weak, there is no wage growth, there is little consumer spending and the main concern is deflation, all of which is feeding into each other".
Earlier this week Goldman Sachs economist Kevin Daly suggested if prices continue to fall, the price of petrol could drop as low as £1.05, a level which has not been seen since August 2009.
And although analysts at DNB Markets have lowered their forecast for prices to "slightly below" $60 in early 2015, Iranian oil minister Bijan Namdar Zangeneh has suggested prices could be pushed as low as $40.