IEA's Birol also continued to warn OPEC and its partners against the impact of resuming supply cuts.
Hussein Sayed, chief market strategist at futures brokerage FXTM said USA comments from APEC "suggest that a deal between President Trump and President Xi is unlikely to see the light when the leaders meet at the G20 Summit later this month".
The concern related to crude oil oversupplies was intensified on Nov.5, when the USA announced waivers so that eight nations could continue to buy Iranian oil despite nuclear-related sanctions announced in May, that went into effect on that day.
Despite that, markets remained wary amid deep trade disputes between the world's two biggest economies, the USA and China, after the pair could not find a solution to their spat at the Asia-Pacific Economic Cooperation (APEC) at the weekend. The December contract, which expired on Monday, gained 0.5 percent to $56.76. The contract closed 3 cents higher at $66.79 on Monday. Total volume traded Tuesday was 40 percent above the 100-day average.
Faced with high oil prices and the prospect of its negative impact on the mid-term elections, US President Donald Trump leaned on Saudi Arabia to use its influence as the defacto leader of OPEC and its budding ties with Moscow to persuade the grouping's members and Russian Federation to ramp up production.
While Saudi Arabia has said producers may have to cut output by 1 million barrels a day, Novak wants them to "make a balanced decision, and so far there are no criteria for it".
Investors are terrified that major producers are about to pull the rug out from under prices at their December 6 meeting, a replay of four years ago when the group elected to forgo output curbs.
In other news, US energy firms added two oil rigs in the week to November 16, bringing the total count to 888, the highest level since March 2015, according to energy services firm Baker Hughes. Options show a scramble for protection in the United States Oil Fund LP, ticker USO, which aims to track the price of West Texas Intermediate crude futures.
Despite today's sharp downward trend, some analysts think that prices are set to regain ground over the next month, based on the trends from past such oil price slumps. The official crude inventory data from U.S. Energy Information Administration will be out at 10:30 AM on Wednesday.