Prices tumbled after OPEC, led by Saudi Arabia, adopted a policy of pumping without limits to try to squeeze higher-cost production, including some US shale output, from the market.
The International Energy Agency, the energy watchdog of the West, also said it unclear how rapidly global oil supply could fall in line with demand even if Russian Federation and the Organization of the Petroleum Exporting Countries agreed on a steep enough cut.
The September surge follows August's decline of 0.3 million barrels per day, which was driven by reduced non-OPEC supply. The price of crude has gained about 15 percent since that proclamation.
The details of how supply will be reduced need to be finalized by the group's next meeting in Vienna on November 30.
Last month, OPEC producers agreed to discuss a deal to limit production to a range of between 32.5 million barrels per day and 33 million bpd.
OPEC members, led by kingpin Saudi Arabia, have been pumping oil at record levels to gain market share over higher-cost rivals, in what the IEA Tuesday called a "free-wheeling strategy".
Oil prices have recovered following a report from the International Energy Agency suggesting that global supplies rose in September.
In any event, higher crude oil prices will only spark increased production from the US, Iran and Canada, offsetting supply quotas. "OPEC has effectively abandoned its free market policy set in train almost two years ago". Read Hopes for Oil Producer Meeting Boosted Prices for Last 2 Months and Why Did the Doha Oil Producer Meeting Fail? to learn more.
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"An $80 per barrel oil price would be the market's golden mean and the oil market needs a price that will ensure and attract investments " he affirmed.
Try to answer this question yourself: would Iran, Saudi Arabia, or Venezuela cut their production?
Nevertheless, the oil market is bracing for a volatile week, with comments from the meeting expected to influence prices, on top of the OPEC monthly bulletin and the International Energy Agency (IEA) monthly report also scheduled for release this week. Oil rose to the highest in more than a year on Monday.
U.S. West Texas Intermediate (WTI) crude slipped 35 cents, or 0.7 percent, to $51. Brent, the worldwide standard, fell 81 cents to $52.33 a barrel in London.
"Given the propensity of OPEC and other producers to talk up prices, and the history of failed deals among OPEC and between OPEC and Russian Federation, we would continue to treat the news somewhat carefully for the longer term", Sberbank CIB said in a note.
In the summer of 2014, oil was trading above $100 a barrel, but increased output from non-OPEC countries, particularly the United States, created an oversupply.
"Russia is ready to join the joint measures to cap production and is calling for other oil exporters to join, "Putin said while speaking at an energy congress in Istanbul, according to Reuters".