Global glut send United States oil tumbling 2%

The 19-commodity index, however, managed to settle just slightly lower after tracking oil’s steady finish, which came on the back of a pledge by Saudi Arabia to work toward crude price stability.

One oil strategist on Wall Street said that no one really believes that Saudi Arabia will bow to the ongoing pressure of cutting output.

OPEC will hold its 2015 annual meeting in Vienna on December 4.

Oil prices could plunge to the lows of mid-$20s a barrel next year if OPEC doesn’t change its policy to stabilize the market, said Venezuelan Oil Minister Eulogio Del Pino.

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

“OPEC isn’t going to do a damn thing, except perhaps confuse the market”, Mike Wittner, head of oil-market research in NY at Societe Generale AG, said by phone.

Saudi Oil Minister Ali al-Naimi said on Thursday the kingdom is working with members of the Organisation of Petroleum Exporting Countries and countries outside of the group to see a stable oil market.

Markets were keeping an eye on developing geopolitical tensions in the oil-producing Middle East as Jordan’s King Abdullah, a U.S. ally, will hold talks in Moscow on Tuesday with Russian President Vladimir Putin on how to tackle “terror groups” led by Islamic State in Syria, an official source said.

Oil extended its decline Monday amid a broader commodity rout as the dollar increased, making commodities priced in the USA currency more expensive.

NEW YORK, Nov 23 Commodities hit 13-year lows on Monday as metals markets crashed but a steady close in oil and higher grains markets helped a key sector benchmark settle off the day’s trough. Prices had previously been down on the day and, last week, WTI crude fell below the psychologically important $40 mark for the first time since August.

Another factor weighing on oil prices is the rising dollar on anticipation that the U.S. Federal Reserve might tighten monetary policy in the next month policy meeting.

West Texas Intermediate for January delivery dropped as much as 94 cents to $40.96 a barrel on the NY Mercantile Exchange and was at $41.12 at 11:57 a.m. Hong Kong time.

Brent futures for January contract also dropped 60 cents, to $44.06 a barrel, after it ended on Friday at 48 cents up at $44.66 per barrel.

Opec has pumped above its collective target for the past 17 months, according to data compiled by Bloomberg.