Oil prices will rebound by the end of the year, OPEC secretary general Abdallah Salem el-Badri told NDTV in an exclusive interview from Davos.
"If nobody will invest in new supply, and when the world turns around and you have more demand and not enough supply, prices will go up," he told NDTV.
Earlier on Wednesday, International Energy Agency's chief economist Fatih Birol also said that he expects prices - hovering at April 2009 lows - to rebound later this year.
Global oil prices snapped a two-day decline and rose around 2 per cent on Wednesday on hopes prices will recover as energy companies cut production investment to alleviate a glut that has wiped out more than half crude's value since June.
OPEC, the 12 nation bloc of oil producing countries, has come under sharp criticism for holding on to its output despite a 60 per cent drop in oil prices since June. The decision of not cutting its output taken by the group on November 27th, termed by many oil experts as Black Friday, sent prices of oil crashing.
Oil prices have slumped over 30 per cent since then.
Defending the OPEC's decision, Mr el-Badri said, "OPEC's decision was trying to balance the market. Because we have a very high cost non-OPEC supply. They want OPEC supply to go out of the market,"
He also said that OPEC did not to cut supplies as they were unable to decide how much to cut.
"At that time we didn't know how much were going to cut. Nobody can tell you, because the price was declining too much; 40 per cent, 50 per cent, 60 per cent and we decided that since we really don't know how much we should cut just let it go," he said.
The OPEC chief said the bloc won't cut supply and will continue to pump 30 million barrels of oil per day, but will review its decision in the next six months when oil ministers meet.
He said it's the non-OPEC countries that need to cut output first.
"No it's not a game of a market share, he insists "OPEC did not decrease its production for the last ten years," he told NDTV.