However, worries over excessive supply from the world's major oil producers still persist, as Russian Federation, the United States and Saudi Arabia collectively produced more than 33 million barrels per day for the first time in October, amounting to more than one third of the world's nearly 100 million barrels per day of crude oil consumption. In trading on Monday, benchmark oil contract Brent North Sea crude gained nearly a dollar.
U.S. West Texas Intermediate (WTI) crude futures rose 1.5 percent to $61.08 per barrel.
Saudi Arabia's energy minister said Monday that oil-producing nations should cut output by one million barrels per day to re-balance the market.
Brent crude oil prices have been rising over the last 2 years after a coalition of 25 OPEC and non-OPEC states agreed in late 2016 to slash oil supplies by 1.8mn barrels a day-prices have averaged at around US$74 a barrel this year, after dropping to an average of US$45 in 2016 and US$54 in 2017.
But cheaper crude oil means lower profit for oil producers, and thus countries such as Saudi Arabia are now mulling a cut in production - which would go against their earlier promise of increasing production.
US President Donald Trump, however, did not like the rhetoric coming from his political ally in Saudi Arabia, and tweeted about it.
USA energy firms last week added 12 oil rigs in the week to November 9 looking for new reserves, bringing the total count to 886, the highest level since March 2015, Baker Hughes energy services firm said on Friday.
The bank added that it expected U.S. crude production, already at a record 11.6-million barrels a day, to break through 12-million barrels a day in 2019, making the United States "energy independent".
Woolsey Fire burns to the ocean as 200000 evacuate
Five people were discovered dead in or near burned-out cars, while another 35 people have been reported missing. Evacuation alerts left more than 300,000 people across California looking for shelter from the wildfires.
Following concerns about too much oil flooding the market, Saudi Arabia on Sunday performed an abrupt u-turn by deciding to reduce production by half a million barrels a day from December.
"While Saudi Arabia is cutting back output in December, the group may wait to see how Iranian supply and other variables play out before it is able to agree on collective action to prop up prices".
The proposed reduction is from October production levels, Falih said.
The fresh plunge comes as representatives from Opec and non-cartel members prepare to meet Sunday in Abu Dhabi to discuss a possible output cut to protect their revenues amid slumping prices. "Oil prices should be much lower based on supply!" They fell below the 60-dollar mark.
U.S. oil prices initially jumped around 1% on Monday, defying a selloff in the stock market. Novak showed no sign he was ready to act immediately and Vagit Alekperov, the CEO of Russia's second-largest oil producer Lukoil PJSC, said there's no need to cut output now.
Cailin Birch, analyst at the Economist Intelligence Unit, said a slowing oil demand is beginning to appear in China, the world's largest importer of crude oil.
There have also been signs that renewed USA sanctions on Iranian oil exports may have a softer-than-expected impact.