Saudi Arabian energy minster Al-Falih in an interview with Al Arabiya television on Tuesday said that 2017 will see a recovery of oil markets. Falih said that he was very optimistic that next year will see economic recovery and a recovery of oil markets.

"All producers were convinced, inside and outside of OPEC, of the importance of accelerating balance in the oil market, and this conviction cements my confidence that all countries will highly adhere to their obligations" said Al-Falih.

OPEC members pledged to reduce production 1.2 million barrels per day (bpd) as of January 1st and non-OPEC producers are to reduce production by 600,000 bpd. Two dozen countries are involved in the cuts.

Stability of oil prices is strategically important for exporters and importers. Producing countries need stable oil prices to draw balanced state budgets over a number of years and carry out long-term planning, as most producers depend heavily on funds from oil, which account for majority of some countries’ public revenues.

OPEC and its partners have established a monitoring committee to ensure that producers abide by their pledges. The committee will hold its first meeting in January, but the location is yet to be decided.