Khalid al-Falih, Saudi Arabia’s energy minister, said on Sunday he believed the oil market would reach a balance in 2017 even if there is no intervention by producers, international news outlets reported.
“We expect the level of demand to be encouraging in 2017, and the market will reach a balance in 2017 even if there is no intervention by OPEC. But OPEC intervention aims to expedite this balance and the market recovery at a faster pace," Falih was quoted as saying.
OPEC is expected to reduce its production between 32.5 million and 33 million barrels per day, under a preliminary agreement reached in September in Algeria -- its first supply cut since 2008.
The oil ministers of OPEC are due to meet in Vienna on Wednesday in an effort to finalize the Algiers agreement. The organization also wants non-OPEC producers, such as Russia, to support this intervention by reducing their output.
Falih emphasized Saudi Arabia would maintain its position that everyone should cooperate.
He also said the level of demand for Saudi crude was still high and very healthy.
"I don't think that we have one path only in OPEC meetings, which is cutting production - I think maintaining production at current levels is justifiable, taking into consideration the recovery of consumption and growth in developing markets and the United States," he said.
By Sibel Akbay
Anadolu Agency
sibel.akbay@aa.com.tr