Brent crude, the European benchmark, was trading just above $65 a barrel while United States crude futures stood just below $56 - its lowest mark for 12 months.
But OPEC followed that up with a monthly report on the state of the oil market showing another cut to its demand forecasts - the fourth in a row.
Crude oil has lost more than 25% of its value since early October in what has become one of the biggest declines since prices collapsed in 2014.
Oil struggled to find its footing on Wednesday after plunging 7 percent the previous session, with surging supply and the spectre of faltering demand scaring off investors. Weak oil demand outlook by OPEC and worries about oversupply and US-China trade war also weighed on oil prices.
Brent for January settlement fell 24 cents to $66.36 a barrel on the London-based ICE Futures Europe exchange. US crude had declined for a record 12 consecutive sessions to the lowest since November 2017.
"The market now increasingly looks concerned about the prospect of too much supply", said Norbert Ruecker, head of macro and commodity research at Swiss bank Julius Baer. Both benchmarks are now trading firmly in bear market territory, having fallen more than 20 percent from their 52-week highs.
Prices recovered, with Brent inching back above $67 after Reuters reported that OPEC and its partners are discussing a proposal to cut output by up to 1.4 million barrels per day (bpd), a larger figure than officials had mentioned previously.
Riyadh indicated on Monday it was on course to ignore the USA president's wishes at OPEC's next meeting due in December because it saw a need to reduce OPEC output by a collective one million barrels per day during 2019.
Days after, the price rose to $85 per barrel early October as the U.S. continued its push to sanction Iran.
Opec is meeting on December 6 and is expected to decide then whether to carry on the production cuts.
He said emerging concerns about weak global demand, rising USA production, and speculators rapidly bailing out of long positions were primary factors for the drop.
Oil prices, which spiked in October in the run-up to the reimposition of U.S. sanctions on Iran's oil industry on November 5, fell after the USA granted waivers to eight countries importing Iranian crude for a 180-day period.