Abu Dhabi: Oil producing countries should cut output by one million barrels per day to re-balance the market, Saudi Arabia’s energy minister said Monday, following a drop in crude prices.

“The technical analysis we reviewed yesterday shows that we need a reduction approaching one million bpd to balance the market,” Khalid al-Falih told an energy conference in Abu Dhabi.

Falih said Saudi Arabia, the world’s largest oil supplier, will cut its production by 500,000 bpd as of next month to help stabilise the market.

Major oil producers on hand for a summit in Abu Dhabi acknowledge that production cuts of up to 1 million barrels a day may be necessary.

Saudi Energy Minister Khalid al-Falih said that an analysis suggested that cut may be necessary, but authorities felt there were many assumptions built into that.

His counterpart from the United Arab Emirates, Suhail al-Mazrouei, currently the president of OPEC, similarly said “changes” would likely be necessary.

He, however, added that “we need not overreact when these things happen.” Crude oil dropped to a low of $30 a barrel in January 2016. Benchmark Brent crude, which had been trading above $80 a barrel recently, now hovers just over $70.

The officials spoke Monday at the Abu Dhabi International Petroleum Exhibition & Conference.