From a 12-year low recorded this month, oil prices again started climbing up hitting $34 a barrel Thursday on a three-week bounce, probably triggered by the action of major oil producers agreeing to cut their oil production.

The head of the pipeline monopoly in Russia, Nikolay Tokarev, said that Russian officials have elected to discuss with OPEC countries including Saudi Arabia about the possibility of reducing their output to boost oil prices

In May, Organization of Petroleum Exporting Country members like Venezuela and Nigeria have issued calls for cuts in production to boost oil prices which have dropped by as much as one-half.

However, the biggest members of the organization did not show any signs that they are willing to reduce their outputs.

Prices of oil have been dropping at the start of the year on the speculation that there will be an oil glut because of Iran's re-entry in the oil production business.

Additionally, there are rumors of a drop in demand for oil from the world market, especially in China, which is the world's biggest exporter.

Last week, oil prices briefly plunged to their 12-year low going below $27 per barrel. But prices bounced back and went higher on Friday on the speculation that additional stimulus measures from Japan and the Eurozone would boost demand. But the rally almost stopped Tuesday as the fears of oversupply resurfaced.

Aabed A. Al-Saadoun, the deputy minister for company affairs of Saudi Arabia at the Ministry of Petroleum and Mineral Resources stated on Thursday in Tokyo that the oil oversupply is estimated to be about 2 million barrels a day.

"It will take some time for the market to rebalance," he said. "We feel that the market will begin to come into balance in 2016 and that demand for energy in all forms will continue to increase," Al-Saadoun added.