Oil prices fell on Monday, releasing fleeting gains made after the Saudi Arabian cabinet reiterated its commitment to work with other producers, as a firm dollar and concern over global oversupply reasserted themselves.
Prices rallied briefly after Saudi Arabia said in a statement the kingdom remained ready to work with other producing and exporting countries to stabilize prices.
U.S. West Texas Intermediate (WTI) crude futures were down 44 cents a barrel at $41.45 a barrel, having touched a session high of $42.75 following the Saudi statement.
Benchmark January Brent futures were last down 3 cent at $44.63 a barrel. The price hit an intraday high of $45.73 earlier in the session.
“Nobody really believes Saudi Arabia will bow to pressure (to cut output),” Commerzbank strategist Carsten Fritsch said.
“In that case, they would surrender all their efforts, or any success they had achieved so far in the last 12 months and any pain would have been for nothing,” he said.