Saudi oil minister strikes conciliatory tone towards US shale oil producers

Saudi Arabia´s oil minister struck a conciliatory tone, telling a global gathering of energy industry executives they must "stick together" until markets rebalance and afterwards.

In remarks on Tuesday, at the IHS CERAWeek conference in Houston, Ali al-Naimi said he was confident a recent agreement by several major producing nations to 'freeze' their output at current levels - which he labelled the beginning of a process - would help curb a glut in oil.

However, the Middle Eastern kingdom would not bank on cuts as there was less trust.

"The freeze I'm sure will give people in the market some hope, that something will happen and it will happen - but we are not banking on cuts because there is less trust," al-Naimi said.

The minister also dismissed talk that Saudi had declared war in any shape, way or form on US shale oil producers, saying their "nimbleness" might be needed once markets regained their composure.

"We are hopeful that the nimbleness and responsiveness demonstrated by shale oil producers will continue. These supplies may be needed quickly once markets balance and tighten," al-Naimi explained.

"We are doing what every other industry representative in this room is doing. We are responding to challenging market conditions and seeking the best possible outcome in a highly competitive environment."

As of 17:45GMT prompt-month crude oil futures were down by 4.174% to $33.30 per barrel on the ICE while West Texas Intermediate was 4.9% lower to $31.83.