Saudi Arabia has described the collapse in oil prices to below $30 as "irrational" and expects the market to recover in 2016 even as the country continues to keep production high.
Khalid al-Falih, chairman of state oil company Saudi Aramco, told the World Economic Forum in Davosthat current prices would not last, with many smaller producers facing financial difficulties.
"The market has overshot on the low side and it is inevitable that it will start turning up," said Mr Falih, predicting higher prices by the end of the year.
He reiterated that Saudi Arabia, the world's biggest oil exporter, would not cut supplies unilaterally or make way for rival producers.
A surge in US shale output over the past five years has contributed to a global supply glut that has pushed oil prices down 75 per cent in 18 months. The sell-off has accelerated this year, with crude dropping 30 per cent as Iran, Saudi Arabia's regional rival, prepares to re-enter the market after the lifting of sanctions.