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Supply and demand in the oil market have been sufficiently rebalanced, following two years of close coordination between OPEC and non-members on crude output, Saudi energy minister Khald Al-Falih said on Sunday.
“We have achieved the objectives pretty much of what we set out in 2016,” Al-Falih said, cited by The Wall Street Journal.
“Markets are relatively balanced,” he added, speaking ahead of a meeting between the energy ministers of OPEC and its allies in Algiers.
Saudi Arabia and Russia also signaled they had confidence in the oil producer alliance’s ability to manage any disruptions to oil supply or major price increases, The Wall Street Journal reported.
The ministerial gathering comes amid growing risks to global oil supply, including from OPEC members Iran, Venezuela, and Libya.
Market concerns over the fall in Iranian crude exports have helped Brent crude approach multi-year highs, with the global benchmark crossing the $80 per barrel mark during trading on Friday.
Iranian crude buyers have begun to cut back on imports over the past few months, ahead of the reintroduction of US sanctions on Iranian oil, set to go into effect on Nov. 4.
US President Donald Trump’s administration in May pulld out of a 2015 international deal to curb Iran’s nuclear program, going on to re-impose economic sanctions on the country.
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