Yet following Al-Khalid's announcement of export cuts, Brent crude added more than 1 percentage point from Friday's close, as per a Reuters report that also noted that Saudi Arabia resorted to the move because of uncertainty that it would receive OPEC's backing for a concerted supply cut effort.
Saudi Arabia's energy minister said oil-producing nations should cut output by one million barrels per day to re-balance the market. All three own refining businesses that give them a natural hedge when prices crash.
Oil collapsed into a bear market in little more than a month, and pressure is mounting on the OPEC+ group to act sooner than their policy meeting in December.
It also suggested waivers granted on U.S. sanctions imposed on Iran which have been granted to several countries including China and Japan was a reason not to fear a decline in supply.
A cut in oil exports by Saudi Arabia - or a rise in oil prices - does threaten to provide political ammunition to newly empowered Democrats who have long signaled skepticism of OPEC.
Kuwait, Iraq, Russia and the United Arab Emirates (UAE) also boosted their output.
"Equities and oil were pretty much falling in lock-step", said Josh Graves, senior market strategist at RJO Futures in Chicago.
The careful stance being taken by the OPEC+ group is due - in part - to the fact that there is still enormous unpredictability of Iran's supply.More news: Barcelona stunned by Betis despite Messi brace in seven-goal thriller
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Traders said a strong USA dollar, which hit a 16-month high on Tuesday, also weighed on crude futures. Analysts believed the exemptions relieved concerns over volatility in global market caused by USA sanctions against Iran.
Current crude prices are still higher than a year ago, but they're well below what Saudi Arabia needs to balance its budget.
The committee that oversees the 2016 OPEC+ agreement to manage supply met Sunday in Abu Dhabi. Over the weekend, the US stopped its refueling support for the Saudi-led coalition fighting against Houthi rebels in Yemen.
Major oil producers said Sunday that crude supply next year would outstrip demand, calling for new strategies based on production adjustments.
They agreed that output increases by producers other than Iran would lead to a glut next year.
Benchmark Brent crude, which had been trading above $80 a barrel recently, now hovers just over $70 after the USA sanction waivers on Iran. Brent has lost 25 percent since peaking at a four-year high in early October. First, while the USA oil rig count is still well below the highs seen in 2014, the rig count has almost tripled since May 2016, and efficiency has improved dramatically over the past few years. "There have been no signs that the deal would be terminated", Novak said on the sidelines of an OPEC+ ministerial meeting.
As reported by Bloomberg, declines in oil prices are forming up a catalyst relationship with emerging markets.
"I think it all comes down to Russian Federation", said Helima Croft, chief commodities strategist at RBC Capital Market LLC.