Oil macro analysis, page-14

Oil mixed despite supply cut hopes

Oil prices were little changed as traders tried to decipher remarks by Saudi Arabia suggesting a production cutback in response to abundant global supplies.
US benchmark West Texas Intermediate for delivery in January shed US15c at $US41.75 a barrel on the New York Mercantile Exchange on Monday.
Brent North Sea crude for January delivery, the global benchmark for oil, rose US17c to $US44.83 a barrel in London.
With oil prices under pressure since mid-2014 amid concerns about oversupply, the market was focussed on recent remarks by Saudi Arabia, the top producer in the OPEC cartel, that it was ready to work with other producers to stabilise oil prices.
OPEC's decision in November 2014 to maintain output despite falling prices accelerated the collapse in prices and is believed to represent the cartel's bid to safeguard market share.

Still, Saudi Oil Minister Ali al-Naimi called for efforts to stabilise the energy market last week, saying that Saudi Arabia was prepared to work with OPEC and non-OPEC producers to support prices.
"The market is quite sceptical that any resolve will occur between OPEC and non-OPEC producers," Andy Lipow of Lipow Oil Associates said.
"But on the other hand, they know that OPEC producers are under financial stress given these low oil prices and they're spending their cash at very rapid rates, including the Saudis."
The 12-nation Organisation of the Petroleum Exporting Countries holds a meeting in Vienna on December 4 as it faces calls for a cut in production.
"Ahead of the December 4th OPEC meeting, it's a positive sign that the Saudis are talking this up right now," Carl Larry of Frost & Sullivan said.
"I don't know if they're really willing to co-operate."