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The market will initially relax from now until 2009/2010 due to a foreseeable increase in supply brought about by new production sites, said Tanaka who is the IAE's executive director.
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But the supply will then drop and demand increase, in particular in developing countries, he added in the interview due to be published on Monday.
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Tanaka observed that some countries such as Russia were taxing foreign companies heavily.
"This discourages investors," he said, adding that some state oil companies should dedicate a part of their revenue to social measures and investment in production.
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On consumption, the IEA chief said he was against the lowering of taxation on petrol products because this would send the "wrong signal" on the subject of the battle against waste.
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The price of oil is currently at a historic high at close to 150 dollars a barrel, an increase of more than 100 percent in the past year.