Oil companies are beginning to see a revival in investments following a two-year drought as OPEC agrees to larger production cuts, the International Energy Agency said in a report on Monday.

OPEC's December agreement to cut production will ease risks associated with future supply difficulties, the agency stated.

The IEA sees "signs of modest recovery" in spending following two years of weak investments.

The agency has doubled its production growth outlook outside OPEC next year as more U.S. shale producers emerge.

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