Oil market prices will take time to recover to sustained levels based on supply and demand as a complex production curb effort between OPEC and non-OPEC countries gathers pace, said Saudi Arabia Energy Minister Khalid al-Falih on Wednesday.
"We expect the impact ... in terms of fundamentals to take several months to be reflected on the market," Falih said in remarks reported form a Saudi Aramco event in Saudi Arabia.
"It is an unprecedented move that will be followed, God willing, by very high commitment and we will see the effect during 2017... in supply-demand rates and a drop in the glut."
Hopes for an increases in demand were spurred by the latest International Energy Agency (IEA) forecast of a gap of as much as 600,000 barrels per day (bpd) favoring demand over supply possible next year.
The increased demand if realized would jibe with a move by OPEC at the end of November to cut its output by 1.3 million bpd in the first half of 2017, and key non-OPEC producers agreed last weekend to add another 558,000 bpd in cuts.
Still, sources said production is a volatile measure in short-term analysis with sources in Iran on Wednesday confirming market talk of an 8% dip in November crude exports to a five-month low.
Iran is exempt from the OPEC output cuts and is expected to increase sales, but gaining market share has been a struggle in China and Japan, key Asian markets, according to sources.
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