Tokyo - Oil prices climbed in Asia on Tuesday before a meeting of the Opec oil cartel and a report on US commercial crude inventories which will let traders gauge demand in the world's biggest oil consumer.
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 global glut.
The market will be closely watching the gathering of the Organisation of the Petroleum Exporting Countries (Opec) next month for firm announcements on the cartel's lofty 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 earlier in the year.
At around 06h10 GMT, US benchmark West Texas Intermediate for January delivery was up 27 cents at $42.02 and Brent crude for January was trading 20 cents higher at $45.03.
“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 Daniel Ang, an investment analyst with Phillip Futures in Singapore.
“If there had been such a signal, prices would be shooting up much higher right now.”
He said markets were waiting for the Opec meeting to see if the cartel “really means business” and starts trimming production.
Traders are also awaiting a report later Wednesday showing US commercial crude stockpiles in the week ending November 20. Expectations are that the data will show another increase.
BMI Research said slower growth in emerging markets was helping keep prices low.
“Prices will struggle to recover, with lacklustre demand lagging global supply. 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.
AFP