A global energy agency says the oil market has further to drop as supplies from the U.S. show no sign of slowing.

The International Energy Agency, a watchdog that represents the world's main oil-importing nations, says in a monthly report that the recent stabilization in oil prices is "precarious."

"Behind the facade of stability, the rebalancing triggered by the price collapse has yet to run its course," it said in the report, published Friday.

The price of oil fell on Friday in the wake of the report. The U.S. contract was down $1.02 at $46.02.

The contract slumped from over $100 a barrel last summer to around $47 in January before stabilizing around $50 a barrel in recent weeks.