Oil prices little changed after Saudi remarks

“We can not allow that the market continue controlling the price”, Del Pino said. The strength of the United States dollar near seven-month highs has a negative impact on crude prices making oil and other commodities more expensive for holders of other currencies.

Analysts are skeptical about the Saudi promise as similar pledges over the years have not been honored and the Saudis along with the other big OPEC producers have managed to keep output high to maintain market share, cutting crude prices by half over the past year. Output from the 12-member OPEC bloc fell in October, led by Saudi Arabia’s drop in demand from its domestic power plants and refineries.

Oil prices were little changed as traders tried to decipher remarks by Saudi Arabia suggesting a production cutback in response to abundant global supplies. Diesel futures rose 2.1% to $1.4025 a gallon.

January futures for North Sea Brent blend decreased by 0.46% to $44.22 per barrel, while January futures for WTI crude oil were down 1.83% to $41.13 per barrel, according to the report.

The official news agency of Saudi Arabia released a statement saying the government was prepared to cooperate with other oil producers to ensure a stable market.

“The market will probably fluctuate on any bit of news leading into the OPEC meeting”, Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney, said by phone.

The Organization of the Petroleum Exporting Countries meets in December.

Analysts said oil might have trouble shaking off weakness amid a stronger USA dollar and persistent worries about the global surplus of crude.

Last week, the USA energy department reported the country’s crude inventories increased by 0.3 million barrels in the week ended November 13.

“The dramatic expansion in the WTI carrying charges since early last month will remain as a major bearish portent that will be keeping alive a test of the late August WTI lows”, said Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch & Associates.

Oil prices rose on Tuesday after the Turkish military shot down a Russian jet fighter along the Syrian border and the dollar weakened. “Diesel is the most exposed from weaker growth, an economic rebalancing in China and the slowdown in global trade”, it said in a market commentary.