Global oil demand is set to grow by 14.0 per cent by 2035, pulled by China and emerging economies and the price could reach US$120 per barrel, the IEA said in its annual report on Wednesday.
"Without a bold change of policy direction, the world will lock itself into an insecure, inefficient and high-carbon energy system," the International Energy Agency said.
"Growth, prosperity and rising population will inevitably push up energy needs over the coming decades," IEA executive director Maria van der Hoeven said.
"But we cannot continue to rely on insecure and environmentally unsustainable use of energy," she added.
The agency estimated in its World Energy Outlook publication that global demand for oil would total 99 million barrels per day in 2035, or 12 mbd more than in 2010, and said that the price could reach $120 per barrel despite current price volatility.