Saudi Arabia hints at further cuts by oil producers

Saudi Arabia's energy minister has hinted that output cuts agreed by oil-producing countries earlier this year might need to be extended in order to rebalance the oil market.

"We might have to extend in order to reach the target... of stock levels," Khalid al-Falih said referring to a deal between OPEC and non-OPEC producers to cut production by around 1.8 million barrels per day.

An "initial agreement" to extend the cuts during was agreed by producers during a meeting in Kuwait last month.

Oil and energy ministers are expected to finalise the deal during a meeting next month in Vienna.

Despite the cuts, oil prices remain low hovering around the $50 per barrel mark with prices dropping on Wednesday and threatening to sink further.

Oil producers are confident that further cuts could stabilise the market.

"We are optimistic that the policy measures we have taken already place us on the path of recovery," OPEC Secretary General Mohammad Sanusi Barkindo said at an energy forum in Abu Dhabi.

The cuts come as the IMF lowered its growth projections for Saudi Arabia in 2017 due to low oil prices and spending cuts.

Agencies contributed to this story.