An oil collector on the Schlumberger field prepares pipes in Midland, Texas, on December 16, 2008.
Kirk McKoy | Los Angeles Times | Getty Images
Oil prices rebounded on Tuesday after reports that production at the world's largest oil producers declined in the third quarter, although a resumption of supply and demand concerns in Saudi Arabia continued to depress prices.
The Brent crude oil futures in December rose 51
The initial monthly prices for both contracts posted the largest quarterly declines this Monday, impacted by a slowdown in global economic growth as a result of the US-China trade war.
"In Asia, short-term funds and other bargain hunters have been profit-taking," said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA in Singapore.
"All rallies are likely to be hit by many sellers as the global economy slows and the recovery of Saudi production outweighs any risk factors for the Middle East for now."
According to a Reuters survey, oil prices are likely to remain stable, with Brent averaging $ 65.19 / barrel and WTI $ 57.96 in 2019, as slumping demand outweighs supply shocks.
Brent has so far averaged $ 64.72 a barrel and WTI an average of $ 58.13 this year.
Saudi Aramco has restored oil production and capacity to levels prior to the attacks on its assets on September 14, the head of its trading department said Monday. Saudi Arabia pumped about 9.78 million barrels a day (bpd) in August.
Nevertheless, OPEC's output of 28.9 million bpd in September fell to its lowest level in eight years. This represents a decline of 750,000 bpd from the revised figure in August and the lowest monthly total since 2011, according to a separate Reuters poll.
Production of the world's two largest manufacturers, the United States and Russia, also declined in July and September, respectively.
Russia's output fell to 11.24 million bpd in September from 11.29 million bpd in the previous month, though it is still above the quotas set in a production agreement between Russia and OPEC.
US crude oil production fell 276,000 bpd to 11.81 million bpd in July, as production of the federal offshore Gulf of Mexico slipped after a monthly report from the US Energy Information Board released on Monday.
US production reached a peak of 12.12 billion bpd in April.
While US crude oil inventories were likely up by 1.1 million barrels last week, distillate stocks are likely to have slipped, a preliminary Reuters poll on Monday revealed.