The market kept a close eye on what signs of the global oil policy will come out from the gathering of world' s major oil producers at the G20 Summit, scheduled for November 30 to December 1, especially among heads of states of Saudi Arabia, Russia and the United States.
"I'm surprised because stock markets rallied yesterday, because the dollar weakened and that should provide some sort of support for oil, but at the same time, I'm not surprised because the Saudi energy minister said yesterday they won't be the only one to cut (output) and even Putin has said he's happy with oil prices at $60".
He added that Saudi Arabia could not act alone and stressed that clarity and collective decisions were needed to stabilize the market.
Next week OPEC producers and Russian Federation will meet to discuss a cutback in oil production.
Brent oil edged down towards $60 on Wednesday, erasing early gains of more than 1%, with the market unconvinced on the prospect of OPEC cuts next week.
The price of oil has fallen by just over a fifth since the end of October and by almost a third over the past two months, in declines not seen since 2008.
Saudi Arabia knows full well that it needs to bank on the United States support at the hard moment when its role in Khashoggi killing earned it global condemnation. The organisation sets production volume to meet the demand for oil in negotiation with countries outside OPEC, such as the U.S. and Russian Federation.
If he persuades major oil-producing nations to maintain their current output, "oil prices could go down to the low 40s", Kloza said.
Traders, however, are still focused on the expected meeting at the G20 Summit in Buenos Aires, Argentina between Saudi Arabian Crown Prince Mohammed bin Salman and Russian President Vladimir Putin.
"Certainly, we are thinking about what we need to do in order to get free of this burden", Putin said in May.
Moscow has so far not committed to any new production cuts.
The other meeting that is key to the oil markets will be the meeting between OPEC members and their allies which is scheduled to take place in Vienna, Austria next week.
The chart shows the cost of production of oil and gas per barrel for the countries by using data from Rystad Energy UCube and The Wall Street Journal.
Falih this month said that the abundant supply of oil could require OPEC and its allies to reduce output in 2019.
Asked on Wednesday whether cuts could be deeper than 1.4 million bpd, Falih declined to answer. They've been exempt from the group's cuts agreement and are unlikely to welcome a decision to include them in any new cuts, Petromatrix's Jakob said.