Abu Dhabi — Oil prices climbed on Monday as the world’s biggest supplier Saudi Arabia announced plans to cut production.

Saudi Arabia’s Energy Minister Khalid Al-Falih said Monday that oil-producing nations should cut output by one million barrels per day to re-balance the market.

“The technical analysis we reviewed yesterday shows that we need a reduction approaching one million bpd to balance the market,” he told an energy conference in Abu Dhabi.

The proposed reduction is from October production levels, Falih said.

Oil prices rose more than 1 percent on Monday, set for their largest one-day increase in a month after the Saudi comments.

Both Brent Crude and West Texas Intermediate (WTI) saw gains of more than a dollar per barrel.

Falih said Saudi Arabia would cut its production by 500,000 bpd as of next month to help stabilize the market. Any official decision on global output cuts will be made at a key ministerial meeting for OPEC and non-OPEC producers in Vienna in early December, the minister said.

Oil producers will continue to evaluate the market data prior to the Vienna summit, “but if we need to trim production by one million bpd, we will do,” he added.

Falih’s comments followed a meeting in Abu Dhabi at the weekend, where major producers started laying the groundwork to cut supply in 2019, reversing an almost year-long expansion.

The group, including Russia and Saudi Arabia, warned that crude supply would outstrip demand next year.

In a final statement, they said they had “reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements”. — Agencies