International Brent crude oil futures LCOc1 were at $63.39 per barrel at 0747 GMT, up $86 per barrel, or 1.4 percent, from their last close. The global benchmark fell as much as 5.1 percent to $63.36, the lowest since early March.
Tuesday's drop extended a slide that has been largely unimpeded since early October.
Crude markers in NY and London have both fallen more than 20% from their October highs on concerns over a supply glut after the USA granted waivers to some buyers of Iranian oil despite sanctions.
Brent crude sank by about 4% today as fears of supply eclipsing weakening global demand continued.
"I think there is a corner of the market that says, 'Well wait a second, is Saudi Arabia really going to go forward with removing so many barrels in a situation where President Trump remains a stalwart ally of the Saudi government?" she told CNBC's "Squawk Box" on Monday. The global benchmark crude traded at a $9.27 premium to WTI. The official crude inventory data from U.S. Energy Information Administration will be out at 10:30 AM on Wednesday.
This comes as supply in the United States is surging, with crude oil production C-OUT-T-EIA up by nearly a quarter this year, to a record 11.7 million bpd.
"The main trend remains bearish as investors no longer believe in a risk of supply tightness for crude", ActivTrades chief analyst Carlo Alberto De Casa said.
Three things learned from Ireland v New Zealand
But at the weekend there, it probably acts as a reassurance as well. "It's a nebulous thing for us". The weekend was also a good one for the US national rugby team, the USA Eagles.
While Saudi Arabia Energy Minister Khalid Al-Falih indicated production cuts are needed, his Russian counterpart, Alexander Novak has taken a more wait-and-see approach. "It really is a too-big-to-fail relationship", said Joe McMonigle, senior energy policy analyst at Hedgeye Risk Management in Washington.
- Portfolio managers have sold the equivalent of 553 million barrels of crude and fuel in the last seven weeks, the largest decline over a similar period since at least 2013.
U.S. crude oil production has soared by nearly 25% this year, to a record 11.7-million barrels a day.
Now, OPEC and its partners are poised to cut output by as much as 1.4 million barrels per day when they meet in Vienna, Austria on December 6.
The Opec envoy for the United Arab Emirates said it was very likely that the group would reduce output but the exact level had yet to be decided.
With output surging and the demand outlook deteriorating, the Organization of the Petroleum Exporting Countries (OPEC) is pushing for a supply cut of between 1 million and 1.4 million bpd in a bid to prevent a repeat of the 2014 glut, when a production overhang resulted in a price crash.