A second source briefed on the discussions said: "We need to reduce but would not want to reduce by much". While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the USA and China has threatened to hurt demand. A seemingly relentless rise in United States crude supply, together with Saudi Arabia's insistence that it will not cut output on its own to stabilise the market, wiped out overnight gains in oil futures.
Why do oil prices fluctuate?
Meanwhile, rising supplies are keeping a lid on prices. In its northern region, the nation is also seeking to fix oil pipelines and facilities damaged in the more recent conflict with Islamic State militants.
The retail fuel prices in India, though, haven't reduced in proportion to the global prices.
However, one of the most important determinants of oil prices is OPEC.
Falih was in Abuja to meet his Nigerian counterpart Emmanuel Ibe Kachikwu.
The consortium controls almost 40 percent of the world's total oil supply.
Petrol prices have slid globally amidst the upheaval in the oil market following the sanctions on Iran and increased output from OPEC as well as America.
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Expectations that USA sanctions would take a substantial portion of Iran oil supply off the market have not materialized.
Crude oil prices hit the lowest in a year on Wednesday, pushed down by huge increases in supply globally.
"Iraq has been increasing production, but not to the extent that Saudi Arabia has done".
Brent for January settlement, which expires Friday, fell as much as 2.1% to $57.50 a barrel on London's ICE Futures Europe exchange.
Average cost of oil and gas production per barrel changes from country to country according to differences on capital spending, production cost, administrative and transportation cost and gross taxes.
It costs the kingdom only $3.50 to pull a barrel from the ground. Saudi and Russian production had cranked up in anticipation of a shortfall that did not happen.
When the Saudi crown prince - as is expected - asks Putin to cut down output in a bid to drive up oil prices, some speculate Russian Federation could have the upper hand in the negotiations.
Speaking in Moscow, Putin said Russian Federation was in touch with OPEC but Moscow would be satisfied with oil at $60 a barrel.
Putin praised Saudi Crown Prince Mohammed on Wednesday and said Moscow is ready to cooperate further.