"If demand goes up very strongly, if the Chinese economy rebounds, then there will be a need, in my view, for the OPEC+ countries to look at their (output) policies," Birol said. Producer group OPEC+ angered the United States and other Western nations in October when it decided to cut output by 2 million barrels a day from November through 2023, instead of pumping more to cut fuel prices and help the global economy as the U.S. advised.

Birol said he hoped such a situation does not repeat, and that OPEC+ - which includes members of the Organization of the Petroleum Exporting Countries and allies such as Russia - will return to a constructive role in the market as demand improves. OPEC+ rolled over the group's current output policy at a meeting on Wednesday, leaving production cuts agreed last year in place.

Separately, Birol said price caps on Russian oil likely cut Moscow's revenues from oil and gas exports by nearly 30% in January, or about $8 billion, compared to a year before. G7 nations, the European Commission and Australia this week approved a $100 per barrel price cap on diesel and a $45 per barrel cap on discounted products such as fuel oil starting from Feb. 5.

This followed a similar measure they implemented on Dec. 5 barring Western-supplied maritime insurance, finance and brokering for seaborne Russian crude unless it was sold below a $60 price cap.