Saudi Arabian officials are reportedly open to potential output cuts but only if Iran also participates.
Sources told Reuters on Friday that Saudi Arabia has offered to trim output ahead of an informal OPEC meeting next week.
The sources told Reuters that Iran has yet to accept the offer.
Two previous attempts to reach a production deal were scuttled earlier this year when Saudi Arabia declined to participate after Iran said it would not cut production.
OPEC members are set to hold an informal meeting at the upcoming International Energy Forum.
The meeting will be held in Algeria from September 26 to September 28.
The producers will likely discuss a production freeze agreement but OPEC Secretary-General Mohammed Barkindo said last week that the meeting is not for “making decisions,” according to reports seen by Reuters.
Saudi Arabia’s oil output fell by about 40,000 barrels per day in August while Iran’s output held steady at about 3.63 million bpd.
The production decline dragged Saudi Arabia’s production down to about 10.63 million bpd last month.
Saudi Arabia has consistently pumped over 10 million bpd since oil prices began falling in late 2014 in an effort to retain market share.
A report from McKinsey Energy Insights published earlier this week found that it will likely take another six months for the market to clear the current oversupply.
Once the oversupply is cleared, McKinsey expects that it will take an additional six to 12 months to work through excess inventories.
That conclusion was in line with the most recent forecast from the International Energy Agency.
The IEA said in its most recent monthly oil market report that it does not expect oil markets to re-balance until 2017.
The agency added that its forecast suggests the current trend of sluggish demand growth and rising production “may not change significantly in the coming months.”