DUBAI (Reuters) – Aramco (TADAWUL:2222) Chief Executive Amin Nasser said on Sunday that the oil market would remain tightly balanced in the short to medium term, adding that he was cautiously optimistic.

Nasser was speaking to the press after the Saudi Arabian oil giant reported its highest ever annual profit since the company was listed. Aramco’s shares traded 0.6% higher after the results were released, but closed mostly flat at 32.8 riyals ($8.74) a share.

A deal agreed between Iran and Saudi Arabia on Friday to re-establish relations after years of hostility that had threatened stability and security in the Gulf would have a positive effect on global energy markets as it promotes regional stability, Nasser said.