Khalid al-Falih said the kingdom, the world's top crude supplier, would cut its exports to 7.2 million barrels per day in January, down from 8.0 million bpd in November.
He also announced a further 100,000 bpd cut in February.
OPEC and its allies decided last month to cut their overall output by 1.2 million bpd starting in January, to boost prices hit by a supply glut and fears demand could plummet.
Falih said Saudi production had fallen to 10.2 million bpd, down from the roughly 11 million bpd it was pumping when oil producers decided to end a production cut deal in May.
"We are concerned about volatility in the oil market," he said. "We have seen peaks and drops in prices (that are) completely unjustified by the fundamentals."
After Brent crude hit USD 85 a barrel in early October, prices dived more than 40 per cent over the following two months due to oversupply and fears of a trade war between the United States and China that could slash energy demand.
That figure is "more than sufficient to bring balance to the market," said Falih, adding that the production cut would trim excess supply from the market.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)