The latest drop in price comes after US President Donald Trump tweeted on Monday that he hoped there would be no oil output reductions, after Saudi Arabia said on Sunday that Opec was considering cutting supply next year.
Former Shell Oil President John Hofmeister on the outlook for oil prices.
The comments from the minister, Khalid al-Falih, show the balancing act the US allies face in dealing with President Donald Trump's actions related to the oil industry.More news: Palestinian factions, Israel reach Egypt-brokered cease-fire
Citing the Trump administration's decision to grant the top buyers of Iran's oil a temporary waiver from sanctions imposed on November 5, Al-Falih said the "sanctions didn't cut so much out of the market as anticipated", Radio Free Europe reported. Even with the slump, however, oil prices are still higher than they were a year ago. Trump wrote on Twitter on Monday. This is 90,000 bpd more than what OPEC forecast a month earlier, and will be also helped by higher production in Canada, Russia, and Kazakhstan. "This must be a two way street".
WTI is now priced well below $60 a barrel. When output is high, prices generally decrease for consumers, whereas lower production increases prices at the pump.
He told the Reuters news agency: "It's getting to the point where it doesn't seem to be about fundamentals anymore, but a total collapse in price".More news: Trump Prepares To Remove Homeland Security Secretary Kirstjen Nielsen
On Monday, the rupee settled at 72.89 per dollar, showing a loss of 39 paise or 0.54 per cent over the last close due to a rise in oil prices after Saudi Arabia announced plans to cut production and the dollar strengthened in global markets.
"The combination of the weak stock market and the Donald Trump tweet had oil give up its gains", Flynn said. USA light crude was US$1.00 lower at US$58.93.More news: Draymond Green of Golden State Warriors out vs. Atlanta Hawks