The Saudi Oil Minister, Ali al-Naimi, said that oil-market stability would only be achieved through cooperation among major oil producers, but that this would likely take time, reported The National. While he understood that the market had been “undergoing a period of instability for more than 12 months now,” he nonetheless remained optimistic about the future.

The oil market goes through petro-economic cycles characterized by periods of instability and severe price fluctuations, Al-Naimi explained, adding that market forces combined with cooperation among oil producing states can restore the stability.

Oil prices fell below $30 a barrel for the first time 12 years, partly in response to the decision to finally remove sanctions on Iran. In response, Iran’s Deputy Oil Minister, Amir Hossein Zamaninia, was quoted as saying that “Iran is ready to raise its crude oil exports by 500,000b/d,” even with the existing surplus in the global market, Independent informed.

OPEC has scrapped its original production cap of 30mb/d over Saudi production policy since 2014, to the consternation of many OPEC members, including Nigeria and Iran.