Saudi Arabia has opened its doors to reduce crude oil production, so oil supply surplus is short-term, so oil production soared to two of the world's largest producing countries.
Energy minister Kalid al Falih said on Monday that a production analysis by producers might require a daily production cut in October at the October level.
Saudi Aramco has announced that it will supply 500,000 barrels a day in December, as demand is low in December, following the remarks of President Parry. Decreased exports can lead to a decline in output.
Saudi Arabia aimed to increase its oil production by 1 million barrels when pressure was imposed earlier this year by US President Donald Trump, who urged Opec to compensate for export losses from Iran after US sanctions were reissued. Despite Saudi Arabia's pledge to increase output, the Trump administration has expressed excessive oversupply concerns to Iran's oil customers such as India and China.
The international standard Brent crude rose 2.1% to $ 71.63 in early London trading. Brent oil, which hit a record high of $ 86 a barrel in four years in early October, dropped 17 percent and fell below $ 70 on Friday.
Saudi Arabia plunged last month as the global economy weakened and expressed concern over oversupply.
Petroleum analysts and Iranian oil officials said a minimum 1m b / d cut would be needed to balance the market. A Kuwaiti oil official said that major exporting countries " [crude] Kuwait's state-owned Kuwait (KUNA) reported on Monday, "without specifying conditions".
Saudi Arabia, the world 's largest oil exporter and OEC' s de facto leader, is confronting a new decline in crude oil prices that could affect an ambitious socio – economic reform program.
However, Russia, the kingdom of efforts to balance the market, said it is unclear whether an oversupply of the market will occur over the next year due to a seasonal imbalance throughout the year.
Those who are knowledgeable about Moscow's production policy said last week that the Financial Times aimed to increase production by 300,000 barrels per day.
Since 2016, Saudi Arabia and Russia have cooperated with oil producers to prevent oil recession for many years. In June this year, countries agreed to ease the oil price hike to ease price hikes.
According to official media reports of producers that met on Sunday to monitor market fundamentals,[pointed] With higher supply increases than global requirements "
Oil exporting delegations gathered ahead of the ministerial meeting in December pointed out that slowing global economic growth prospects could hit global oil demand next year.