Saudi Arabia recently joined some members of the Organization of Petroleum Exporting Countries and Russia in backing a move to freeze production at January levels provided other oil-rich countries follow suit.
On Tuesday, US stocks suffered big losses as Wall Street digested mixed economic reports amid declining oil prices. Mr. Zanganeh said he supported efforts to calm oil markets but didn't offer any commitments to limit Iran's oil output.
Futures slid as much as 2 percent in New York. Back then, crude was trading at about 40 a barrel, a level al-Naimi said was "unsustainable". "The market is still in surplus and will remain that way for some time".
"So they should freeze their production at 10 million barrels and we should freeze ours at 1 million barrels - this is a laughable proposal", he said. Shares of Chevron and Exxon were off about 1.5 percent premarket.
"If they want to balance the market the solution will be easy".
He told the IHS CERAWeek conference in Houston the tentative pact to freeze output reached last week between Saudi Arabia, Russia, Venezuela and Qatar was just a start. Instead, he advises unprofitable producers to get out of the market, a thinly-veiled remark about United States and Canadian projects who are unprofitable at current prices as they invested billions into oil production during the oil boom.
Countries are pumping about 1 million excess barrels of oil per day - a surplus that's not expected to be erased until at least early 2017, analysts say. Cutting low cost output to subsidize higher cost supplies only delays an "inevitable reckoning", he said.
Around 1230 GMT, US benchmark West Texas Intermediate (WTI) for delivery in April was down 79 cents at $32.48 a barrel. GBP/USD fell below $1.40 for the first time since 2009.
BP foresees a 20 percent rise in planet-warming emissions by 2035, or by 10 percent in its lower carbon scenario, which assumes a carbon price of $100 per tonne. Prices lost 30 percent previous year.
Oil and gas companies recently have shed more than a quarter-million jobs worldwide, and at least 70,000 in the U.S. The data showed that refinery runs declined again, down to 15.7 million barrels per day for the week ending on February 19.