Oil prices climbed in Asia Tuesday ahead of a key meeting of the Organization of Petroleum Exporting Countries (OPEC) and a report on US commercial crude inventories to gauge demand in the world’s biggest oil consuming nation.
Analysts said the impact of comments by the Saudi Arabian oil minister that his country was prepared to work with other oil producers to stabilise prices was muted because there was no firm signal to slash production to ease the glut in global crude supplies.
The market will be closely watching the gathering of OPEC on December 10 for firm announcements regarding the Organisation’s production levels, analysts added.
OPEC’s decision in November 2014 to maintain high output despite falling prices accelerated a decline from peaks of more than $100 a barrel seen earlier in the year.
At around 8:10AM, US benchmark West Texas Intermediate for January delivery was up 16 cents at $41.91 and Brent crude for January was trading 17 cents higher at $45.00.
“There was no concrete signal from the Saudi oil minister’s remarks that OPEC will cut back on production so the impact is limited,” said an investment analyst with Phillip Futures in Singapore Daniel Ang.
