OPEC 're-balancing' oil market, says Qatar energy minister

Oil prices should stabalise this year, Qatar's energy minister and head of OPEC has said, giving relief to hard-hit oil producers in the region.

World markets were "responding positively" to output cuts implemented by both OPEC and independent producers, Mohammed Saleh al-Sada said.

"As you know, what we are after is the rebalancing of the market," Sada added.

OPEC and non-OPEC producers led by Russia agreed in December to cut output by nearly 1.8 million barrels per day - initially for six months - starting from the beginning of this year.

Sada said he was happy with the level of compliance with the agreed cuts by individual producers. "The degree of adherence is very high," he said.

The OPEC president's comments help pare back a slide in prices following a reading showing US stockpiles soared last week.

Benchmark West Texas Intermediate fell more than one percent on Tuesday as markets fretted that a US government report to be released later on Wednesday would also point to an increase in stockpiles.

Early Wednesday morning, West Texas Intermediate was trading down 46 cents at $51.71 per barrel, while Brent North Sea crude was down 29 cents at $54.76.