Opec and Russian Federation could revise their strategy, their oil ministers said at the conclusion of the Joint Ministerial Monitoring Committee meeting in Abu Dhabi on Sunday.
"If all things remain equal, and they nearly certainly will not as things will change - it is a dynamic market - then the technical analysis we saw yesterday. tells us that there will need to be a reduction of supply from October levels approaching a million barrels", Falih said. Abu Dhabi, home to most of the U.A.E.'s oil deposits, this month increased planned spending by 22 percent to exploit recent discoveries and raise capacity.
Last week, the U.S. Energy Information Administration released a report that revealed U.S. oil production increased by as much as 400,000 barrels a day to a record 11.6 million barrels a day for the week ended November 2.
This as global crude prices dropped by as much as 20 per cent since last month, easing the concerns of energy security and economic sustainability in countries that rely on oil imports - such as India, China, and Japan.
US crude futures CLc1 settled down $4.24 a barrel, or 7.1 percent, to $55.69 a barrel.
Momentum seems to be growing among major oil producers to reduce output in an effort to end a slump in prices.
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US President Donald Trump put pressure on OPEC not to cut supply of oil to prop up the market. These countries said they would consider "options on new 2019 production adjustments, which may require new strategies to balance the market".
Iraq now pumps around 4.6 million barrels per day (bpd) of oil, second only to Saudi Arabia in the Organisation of the Petroleum Exporting Countries. Output, however, rose by 127,000 bpd to 32.9 million bpd, OPEC said.
Sean Evers, managing partner, Gulf Intelligence, said, "The severity of United States sanctions has clearly not turned out to be as robust as had been expected with the USA offering waivers to 8 countries, including China and India, Asia's two largest importers".
The bank added that it expected USA crude production, already at a record 11.6-million barrels a day, to break through 12-million barrels a day in 2019, making the USA "energy independent". That hasn't helped oil majors Exxon Mobil (XOM) and Chevron (CVX)-they're down 0.5% and 0.9% respectively-while the SPDR S&P Oil & Gas Exploration & Production (XOP) and Energy Select Sector SPDR (XLE), the biggest oil-related exchange-traded funds, are off 1.6% and 1.1%, respectively.
Unsurprisingly, this view is shared by Vagit Alekperov, CEO of Russia's Lukoil, who told delegates to the Abu Dhabi event on Monday that "I don't see any point in cutting".
The above statement was quoted by 66 per cent of respondents to a Gulf Intelligence GIQ Oil Markets Survey of 100 energy industry professionals. It would also weigh on global growth, hitting even those countries that export oil.
Meanwhile, analysts believe OPEC, led by Saudi Arabia, of course, "is acting responsibly by reducing its production that it had earlier brought online to offset possible Iranian losses".