Limiting the downside to oil prices, Iraqi Oil Minister Thamer Ghadhban said OPEC would discuss whether to deepen output cuts, when ministers meet on Thursday. -China trade dispute was escalating, increasing fears of a recession and slower demand growth.
Prince Abdulaziz said on Monday the world's top oil exporter would keep working with other producers to achieve market balance and that an OPEC-led supply-curbing deal would survive "with the will of everybody".
Among the best performing non-leveraged ETFs of Monday, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) surged 5.4%, VanEck Vectors Oil Service ETF (NYSEArca: OIH) jumped 5.6% and iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) increased 5.0%.
Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia's policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.
"The change at the helm of the Energy Ministry holds the potential to focus on further supporting oil prices, in line with budgetary or domestic purposes", Jean-Michael Sallba, Bank of America Merrill Lynch MENA economist/strategist, wrote from London.
The United States is "very concerned" about China's purchases of Iranian oil, Dan Brouillette, deputy secretary of the U.S. Department of Energy, said on Monday.
The American Petroleum Institute is reporting weekly oil inventory estimates today and if it is in its now habitual surprising mode it could push prices further up.
A Saudi official said on Sunday that there would be no shift in Saudi and OPEC policy on the cuts and that Prince Abdulaziz would work to strengthen OPEC and non-OPEC cooperation.
Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.
The Schork Report Publisher Stephen Schork on the oil market and the future of the Saudi Aramco IPO.
Speaking to Middle East Eye earlier this year, Ali Bakeer, a Turkey-based political analyst, said: "A nuclear Saudi Arabia means nuclear proliferation in the most unstable and volatile region of the world".
He added that the so-called OPEC+ alliance between OPEC and non-member countries including Russian Federation, a partnership he helped cement, was staying for the long term.
Some commentators have suggested that Saudi Arabia wants a higher oil price, at least temporarily, to create more favourable conditions for the sale of shares in the national oil producer Saudi Aramco. According to a Bloomberg report, Saudi Aramco is now the world's most profitable company. Rumayyan is a close ally of the crown prince who for three years has run the country's Public Investment Fund, a sovereign wealth fund with $320 billion worth of assets.