State oil giant Saudi Aramco sees an “equilibrium” returning to the oil market in the first half of this year, after a rollercoaster ride in prices in recent years, said a report.

Opec in November agreed to cut production by 1.2 million barrels a day from January 1, in an attempt to boost oil prices after they plummeted by more than half, reported Arab News.

Amin H. Nasser, head of Saudi Aramco, said he sees the market balancing.

"The recent agreement… I think it is stabilizing the market, the market is balancing. We are hoping by the first half of 2017 there will be an equilibrium, and there will be a growth. Because demand, what we are seeing, is strong. There will be a need for more resources to come," stated Nasser.

He was speaking at the World Economic Forum Annual Meeting in Davos, Switzerland.

Khalid Al Falih, Saudi Minister of Energy, Industry and Mineral Resources said that setting oil prices at high levels was no longer feasible.

“Certainly we’re not in the business of setting a price $100, $60 or $70 is no longer a realistic expectation. Some of the Opec member countries may desire this, but we certainly cannot do it,” he added.