A woman pumps gas at a station in Falls Church, Virginia December 16, 2014. Reuters/Kevin Lamarque
Crude oil futures rose more than one percent on Tuesday after Saudi Arabia pledged to work towards oil price stability, while a strong U.S. dollar and an expected rise in U.S. crude stocks helped to keep the gains in check.
Brent futures for January LCOc1 climbed 51 cents to $45.34 a barrel as of 0745 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was up 52 cents to the session’s high of $42.27 a barrel.
“The focus is turning to the upcoming OPEC meeting and the hope that some production cuts will be forthcoming. OPEC member comments leading into the December 4 meeting are likely to continue to drive sentiment,” ANZ said in a note on Tuesday.
Saudi Arabia led a shift by the Organization of the Petroleum Exporting Countries (OPEC) in November 2014 to defend market share against competing supplies, rather than cut output to prop up prices.
The kingdom’s cabinet said on Monday, though, it was ready to cooperate with OPEC and non-OPEC countries to achieve market stability, days before OPEC meets to review its year-long policy of not supporting prices.
Yet some doubted the Saudi comment would lead to any significant change in policy.
“As long as nothing concrete is being rolled out, we remain sceptical of the possibility. Therefore … we would think that the Dec 2015 OPEC meeting would be a non-event again,” Daniel Ang…