Saudi Arabia and Russia, the world’s biggest oil producers, along with Venezuela and Qatar, on Tuesday agreed to freeze oil output at January levels. However, the acting president of the Organisation of Petroleum Exporting Countries, Mohammed bin Saleh al-Sada, clarified that the agreement was conditional and they will go through with it “provided other major producers follow suit”. Sada, who is also Qatar's energy minister, added that this was part of efforts to stabilise the oversupply in the market, AFP reported.

“Intensive communications” will begin immediately with other OPEC and non-OPEC producers to gain their approval, said Sada. He added that this will benefit both crude exporters and consumers, and also improve the world economy. This is the first attempt by member and non-member states of OPEC to control oil production after nearly 19 consecutive months of decline in oil prices.

Since June 2014, oil prices dropped about 70% as a result of oversupply and low demand. It was feared that the prices would fall even further following Iran’s return to the market after international sanctions on the country were lifted.