Saudi Kingdom is OPEC's (Organization of the Petroleum Exporting Countries) largest crude oil producer and exporter.
OPEC's focus is on to jointly implement the supply adjustments in order to continue to accelerate the destocking to restore stability, Mohammed Barkindo said adding, if the balance is restored between demand and supply of crude oil, it would be in the best interest of the global economy.
OPEC and other producers that include Russian Federation have agreed to reduce output by 1.8 million barrels per day (bpd) to revive the oil prices. But, the oil group soon moved to curb production-along with other oil producing nations-in late 2016.
Saudi Arabia has cut November allocations by 560,000 barrels per day (bpd), in line with its commitment to an OPEC-led supply reduction pact. By contrast, it exported 6.7 MMbpd of crude oil in September 2017.
"In an alternative scenario, sustained weakness below $49.00, which is also under the 50 daily simple moving average, may open a path towards $47.80".
Last year, the bloc and some others producers made a decision to reduce production by around 1.2 million barrels per day from January 1, 2017. We all, at the end of the day, when all is said and done, belong to the same industry and operate in the same markets. The United States is not party to the deal, and its crude output has risen 10 percent this year to more than 9.5 million bpd.
The oil price crash drove many US shale operators out of profitability, but it was OPEC-and-partners' production cut deal that gave support to oil prices late last year and early this year, prompting USA drillers to return to grow production.
USA oil exports are pouring into the market at a record pace, but the world's second largest crude trader Glencore said demand should be strong enough to absorb the volumes along with those from competitors in the North Sea and West Africa.
But analysts at JP Morgan said this was less of an issue, saying "concerns that OPEC compliance would fade into the fourth quarter now appear unfounded".