Citing an interview given to Bloomberg, the Saudi Press Agency (SPA) reported on Monday that Saudi Arabia's energy minister said that OPEC+ has the means to deal with market challenges including cutting production at any time, in different forms.

"Paper oil market has fallen into a self-perpetuating vicious circle of very thin liquidity, extreme volatility undermining market’s essential function of efficient price discovery," the minister added. "OPEC+ will start working on a new agreement behind 2022 building on previous successes."

Market reaction

Crude oil prices rebounded from daily lows on these remarks. As of writing, the barrel of West Texas Intermediate, which dropped to a daily low of $86.25 earlier in the day, was trading at $89, losing 0.8% on the day.