He was speaking at a news conference after he agreed with the oil ministers of Qatar, Russia and Venezuela to freeze their output at January levels providing that other major producers followed suit.
"Freezing now at the January level is adequate for the market, we believe," he said.
"We recognize today the supply is going down because of current prices. We also recognize that demand is on the rise.
"The reason we agree to a potential freeze of production is simply, it is the beginning of a process which we will assess in the next few months and decide if we need other steps to stabilize and improve the market," Naimi said.
"This is very important, we don't want significant gyrations in prices, we want to meet demand. We want a stable oil price," he added.
(Reporting by OPEC team; Writing by Andrew Torchia)
