Crude oil prices had been climbing up last month amid expectations that the sanctions on Iranian oil from early November will result in short supply in the market. The sanctions affect the sale of Iranian oil and companies around the world that buy Iranian oil.
In the previous week ending November 2, WTI and Brent lost 6.6 percent and 6.2 percent, respectively, and WTI and Brent settled at 63.14 USA dollars and 72.83 dollars per barrel, respectively, at the end of the week.
"That gave people pause that there may be strong lobbying about to occur from the White House trying to persuade OPEC not to act on it's proposal", said Bart Melek, head of global commodity strategy at TD Securities in Toronto.
American oil executives will sleep a bit better tonight after Saudi Arabia signaled it's coming to the rescue of the battered crude market.
With oil demand growth slowing, it's entirely possible that US production alone will increase more than global demand in the next few years. Trump said in a Twitter post on Monday.
The OPEC said later that its member countries are ready to meet global oil market needs in case of any politically-motivated fall in supply, and "maintain their continuous efforts in pursuing a balanced and sustainably stable global oil market". Prices for both WTI and Brent crude - the US and global benchmarks, respectively - have plunged about 20% since early October.
In this light, Saudi Arabia has announced a new round of output cuts aimed at supporting the prices - which are, in the near-term, still expected to remain at that country's fiscal breakeven, estimated at roughly $70/bbl.
In fact, all three countries are pumping at or near record highs, with other OPEC members and exporting nations also turning on the taps.
"This announcement of at least Saudi Arabia reducing probably will firm the price", BP Chief Executive Officer Bob Dudley said in a Bloomberg TV interview.
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The two countries have clashed over the October killing of USA -based journalist Jamal Khashoggi at the Saudi consulate in Istanbul.
Still, the president is likely aware that his statement could irritate Saudi leadership.
Producers implemented large cuts starting at the beginning of 2017 but they eased output cuts as of June this year.
And the changes in posture by a Trump administration that had previously given Riyadh a pass on a range of global issues could prove an irritant in a relationship that has been carefully cultivated by the president and his son-in-law, Jared Kushner.
Saudi Arabia is discussing a proposal to cut oil output by up to 1 million barrels per day by OPEC and its allies, two sources close to the discussions told Reuters on Sunday. Those concerns were driven in part by developments in the United States.
Producers need to cut about 1 MMbopd from October production levels, Saudi Energy Minister Khalid Al-Falih said in Abu Dhabi. The kingdom will reduce shipments by about half that amount next month, making its second policy U-turn after a summer surge in prices was followed by a swift collapse into a bear market this month.
Saudi Arabia and Russian Federation are the world's biggest exporters, although the United States now produces more oil, according to US government estimates.
Not even Saudi Arabia's promise to cut exports was enough to stem oil's slide.
"Don't be surprised if oil prices to react positively to this weekend's news".