OPEC, Russia and several other non-OPEC producers began to cut supply in January 2017 in an effort to erase a global glut of crude that had built up since 2014. They have extended the pact until the end of 2018.
"I think a lot of the glut has been cleared," said Falih. Asked if he was happy with the current market, he replied, "Yes, I am."
Brent crude was trading above $70 a barrel on Wednesday, though easing away from the 2014 highs it matched in the previous session, as escalating Middle East tensions were offset by increasing inventories and production in the United States.
OPEC and its partners meet to decide oil policy in June and next week a ministerial panel gathers to review the market. The remarks from Falih suggest big changes in the supply cut agreement look unlikely for now.
"There is no such thing as a target price by Saudi Arabia," he said. "We're seeing many regions declining. The only way to offset this is for the financial markets to start financing and funding upstream projects."
"I don't know what is the price that will provide that equilibrium. All we know is in 2018 we're still not seeing that."
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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