The increase in United States crude oil stocks worked to push the price of oil lower, as it showed a larger-than-expected rise at a time when fears are rising that oil stocks will decline in the coming months, once the November implementation of the USA sanctions on Iranian oil exports is fully in place.
OPEC, Russia and other oil producers, such as USA shale companies, had increased production sharply since May, the IEA said, raising world crude output by 1.4 million barrels per day (bpd). China's slumping purchases of American crude - and its extra buying from elsewhere - have coincided with a trade war between the US and the Asian country.
The market has also been supported amid growing U.S. tensions with top exporter Saudi Arabia over the disappearance of Saudi journalist Jamal Khashoggi.
"The oil price pain being now felt would have been much worse if we had believed people who 4-5 years ago said that oil demand had peaked and would decline", Mr. Al-Falih added.
He said he had told the Indians "consistently that on November 4 the sanctions will be enforced and that we will consider waivers where appropriate".
"My frequent visits to India are indicative of the importance Saudi Arabia attaches to this great nation as a critical energy and a strategic global player", he said calling the county an "emerging superpower".
The oil exchange is a mechanism that attempts to sidestep the US sanctions, which are being reimposed following the USA withdrawal from the nuclear deal, by allowing private companies to buy the crude at auction in Tehran and then resell it privately on the open market.
"The market is reacting to the unexpected decline as inventories tend to rise at this time of year", said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.
Brent crude oil slid to $79.75 as the price drop kickstarted by last week's global equity sell off spilled over for another day.
In the first week of October, Iran's crude exports averaged 1.1 million barrels per day, according to Refinitiv Eikon, an industry source of data on tanker traffic.
"The oil that Saudi Arabia presented to the market recently was not its excessive production but was its past reserves", Zanganeh disclosed.
State-run oil marketing companies (OMCs) have placed orders for importing crude oil from Iran next month when U.S. sanctions on Tehran are due to take effect, Petroleum Minister Dharmendra Pradhan said on Tuesday. Electric vehicles, he pointed out, are in the passenger vehicle segment, which accounts for only a quarter of oil demand.