Oil traded at its lowest in more than a month after Saudi Arabia reiterated plans to raise output and as tumbling equities weakened sentiment. This is the objective of the agreement: "monitor and stabilise", he said.
Oil prices dipped on Tuesday after Saudi Arabia pledged to play a "responsible role" in energy markets, although sentiment remained nervous in the run-up to US sanctions against Iran's crude exports that start next month. "And that happened", he told Bloomberg in an interview.
USA crude oil production has climbed by nearly a third since mid-2016 to around 11 million barrels per day, and rising drilling activity points to further increases. "So we did our job and more", the crown prince claimed, prompting Zangeneh to dismiss the remarks as "nonsense". "No one else will believe him", the Iranian minister said then.
The Trump administration is counting on full cooperation from other countries to reduce Iranian oil exports to zero. "As I have said many times, there is no replacement for Iranian oil in the market", he said. Meanwhile, Iran's oil minister Bijan Zanganeh has said that Saudi Arabia and Russian Federation can not replace Iran' oil as the production capacity of the two countries has reached its peak.
The surest sign is the reassurance given by energy minister Khalid al Falih yesterday that Riyadh has no intention of deploying an oil embargo in defence of its interests.
In other news, USA drillers added four oil rigs in the week to October 19, bringing the total count to 873, Baker Hughes energy services firm said on Friday, raising the rig count to the highest level since March 2015.
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As regards non-OPEC producers, Zangeneh said, Russia's oil production in September increased at its highest level by 388,000 barrels per day from May.
"There are several reasons for the slide in crude oil, chief among them is it's a risk-off day across all financial markets,"said Bob Yawger, director of the futures division at Mizuho Securities USA".
Concerns about the health of the global economy, leading to the equities selloff, are seeping into the oil market.
USA sanctions on Iranian oil begin on November 4 and Washington has said it wants to stop all of Tehran's fuel exports, but other oil producers are pumping more to fill any supply gaps.
The US needs some allies in the Middle East, Riyadh buys a huge amount of Western military equipment and it is still the world's biggest oil supplier.