"The oil market is "pretty much in balance," Bob Dudley the chief executive of BP has told CNBC.
Speaking at the World Energy Conference in Istanbul he said the current oil price was giving producers a little more breathing room.
"We look at it on a daily basis and it is pretty much in balance. It is pretty much there, within half a million barrels one way or the other," Dudley told CNBC.
Dudley added with oil stocks still so high, the wider market sentiment may take time to change.
On the cost of production per barrel, Dudley told CNBC that said BP was looking to re-base targets: "We said $60 next year; we are under $55 now. We can see our way to $53 next year."
"We are going to work hard make these sustainable, so that we don't have to rely on swings in prices that are volatile and not healthy for industries and consumers and markets."