Saudi Arabia has said it will trim oil exports by 500,000 barrels per day (bpd) in December, as major producers met to consider cuts to shore up declining prices. In trading on Monday, benchmark oil contract Brent North Sea crude gained nearly a dollar.
West Texas Intermediate crude also dropped to a nine-month low, below $60 a barrel.
Saudi Arabia expressed the need for oil producers to cut 1 million barrels a day from October levels and announced fewer shipments from next month, as OPEC and its allies began laying the groundwork to reduce oil supply in 2019, reversing an nearly year-long expansion.
Oil prices rose by about one per cent on Monday after top exporter, Saudi Arabia, announced a cut in supply for December.
Falih said Saudi Arabia was not pushing for the break-up of OPEC, which at present supplies about half the world's petroleum requirements, Reuters reported.
The caution of some other members of the group over whether respond swiftly to the recent price collapse arises partly from the unpredictability of Iranian supply amid US sanctions. In barrel denomination under the 7.33 coefficient, Russia's production in October was 11.4 million barrels a day. Barron's Al Root noted that changes in output from the particular world region can have an outsized impact on commodity prices due to the major difference in what it costs to produce oil in the kingdom versus other places in the world.
The JMMC meeting coincided with the celebration of the second anniversary of the Algerian Accord, which laid the foundation for the 24 countries to strike an alliance (OPEC+) to cut production to restore market stability. Oman, one of the smaller members of the OPEC, chipped in, stating that it would support a motion to cut oil supplies by 1 million barrels per day.
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Crude prices jumped by as much as 2% on the prospects of reduced supply from OPEC. "I think I was prodded by his excellency Khalid Al-Falih that probably there was a need for us to respond", he said.
Prices have been hurt by rising US oil inventories and fear that trade wars could contribute to slower economic growth, which would reduce demand for energy. "I would not want to focus purely on production cuts", Russian Energy Minister Alexander Novak told Bloomberg Monday.
In the span of five weeks, a roaring bull market for oil has given way to a sharp downturn.
There have also been signs that renewed United States sanctions on Iranian oil exports may have a softer-than-expected impact.
According to official statistics, Russia's oil production in October went up by 0.5%, to reach 1.557 million tonnes a day, on the backdrop of the OPEC+ decision to resume production.
The Joint OPEC-non-OPEC Ministerial Monitoring Committee reportedly debated over whether it would be necessary to reduce output by one million barrels a day next year to prevent a market glut.
Producers implemented large cuts starting at the beginning of 2017 and managed to push up oil prices from below $30 a barrel to over $85 in October, strongly improving their revenues.