The rise in global oil production, led by the United States, is likely to outpace growth in demand this year. That's according to the International Energy Agency on Tuesday.

The Paris-based IEA raised its forecast for oil demand growth in 2018 to 1.4 million barrels per day, from a previous projection of 1.3 million bpd, after the International Monetary Fund upped its estimate of global economic growth for this year and next. However, the rapid rise in output, particularly in the United States, could outweigh the pick-up in demand and push up global oil inventories. The IEA estimates demand for OPEC's crude in 2018 will average 32.3 million barrels per day, after dropping to 32.0 million in the first quarter of the year.