Oil fell on Thursday, bringing losses for the month so far to 23 percent, marking its largest one-month fall since the depths of the financial crisis in 2008.
A rise in US crude supply, alongside a refusal by Saudi Arabia to reduce its output, sent Brent crude, the global index, to another 2018 low below $58 a barrel.
To this effect, Nigeria's Minister of State for Petroleum Resources, Dr Ibe Kachikwu, and Saudi Arabian minister of oil and energy, HE Khalid Al-Falih, met in Abuja on Wednesday to discuss how both countries would help to ensure price stability at the upcoming OPEC meeting in addition to seeking areas of collaboration between the two countries.
Things will come to a head this weekend at the Group of 20 summit in Buenos Aires, a meeting that could shape the oil market in 2019 and affect everything from the war in Yemen to the share price of Exxon Mobil Vladimir Putin will also play a key role - Russian Federation and Saudi Arabia have spent the last two years working together to manage the oil market.
USA crude fell 32 cents to $51.24.
"We are now in contact with OPEC and if needed, we will continue this joint work", Putin said at an investment forum on Wednesday.
Falih's challenge is to get other countries on board with output cuts to avert another crash in oil prices next year while disguising the kingdom's diminishing leverage in the oil market. However, worldwide benchmark brent crude rose 60 cents, or 1.02 per cent, to $59.36 a barrel, having settling down 2.4 per cent on Wednesday at $58.76 a barrel.
The degree of the fall in global crude was not factored in by the governments but clearly, US President Donald Trump had signalled to Saudi Arabia that he was not happy with the way the prices were moving northward.
US stockpiles were expected to build again in the latest week, traders said, citing data from energy information service Genscape. It resumed pumping crude for export by pipeline from northern fields this month and is expanding capacity to produce at its main deposits in the south.
Members will meet in Vienna on Thursday as latest figures from the International Energy Agency suggest an oversupply of 1.7million barrels per day.
U.S. crude inventories zoomed to 450 million barrels as of the week to November 23, exceeding expectations, the Energy Information Administration data showed on Wednesday. "However, we might see some movement on global trade issues at the G20 meeting which starts on Friday", said Michael McCarthy, chief strategist at CMC Markets and Stockbroking. -China trade war a key focus.
Anticipation of the meeting may also be driving prices higher, said Kilduff of Again Capital, adding that traders are wary of being short ahead of the meeting.