Falih said oil prices would "easily be at the three digit range had it not been for the extra effort the kingdom has done over many years by investing in capacity and then unleashing that capacity, delivering barrels over last few months, reversing inventory draw down".
In relevant remarks last week, Zanganeh dismissed Saudi officials' claims that the country could compensate for a loss of Tehran's supplies in the global market after the imposition of the United States sanctions.
U.S. President Donald Trump can not bring oil prices down by "bullying" other nations, Iran's oil minister said on Tuesday, adding that the market was suffering from short supply.
He added that altogether, "the market is spent" and "we're going into a deficit situation where spare capacity is low"; he concluded that oil prices will "be above $90" if any sizeable outages occur in the near future.
"We don't expect the Kingdom to be as accommodative to the White House requests for stronger production", he said, adding that the Saudis could cut as much as 500,000 barrels per day of production "as a warning shot should the USA opt to impose any type of sanction in response to the Khashoggi developments".
USA crude oil CLc1 slumped $2.17, or 3 percent, to settle at $69.75 a barrel.
Energy stocks get whacked after OPEC says oil is 'well supplied'
India's September oil imports were also boosted by the import of 2 million barrels of Iranian oil by Reliance Industries Ltd . Crude prices are falling again Thursday morning, with WTI for November delivery trading down about 1.5% at $72.09.
The country announced in August it was in talks with the U.S. government to receive exemptions on Washington's sanctions on oil imports from Iran, which is Seoul's third crude supplier.
According to the latest data from Refinitiv Eikon, Iran has exported 1.33 million barrels per day (bpd) to countries including India, China and Turkey in the first two weeks of October, down from 1.6 million bpd in September.
USA lawmakers pointed the finger at the Saudi leadership over the disappearance of prominent Saudi critic and journalist Jamal Khashoggi, suggesting sanctions could be possible.
Crude bumped higher this year as uncertainties persisted over whether the Organization of Petroleum Exporting Countries and its partners can offset potential supply losses from US sanctions on Iran that kick in early next month.
Front-month London Brent crude for December delivery LCOc1 was up 13 cents, or 0.2 percent, at $80.18, having ended down 1.7 percent. For the remainder, enough cushion is available to avert any supply disruption, they had said. It could enter into the oil world if the Saudi's are forced to retaliate by pulling crude from the market.
Meanwhile, new figures are out for USA oil inventories.