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 Brent crude, the global oil benchmark, was trading up 48 cents at
$45.34 a barrel at 1157 GMT. U.S. crude futures were 32 cents higher
at $42.03 per barrel.
Nevertheless, both contracts are set to end November some 7-9
percent lower as a global supply glut shows no sign of diminishing.
Preparing for Friday's the Organization of the Petroleum Exporting
Countries (OPEC) policy decision, oil traders strengthened their
positions to prepare for any unexpected outcomes.
"We see a lot of positioning ahead of the OPEC meeting at the end of
the week. That is sparking a lot of interest," said Michael Poulsen,
oil analyst at Copenhagen-based Global Risk Management.
OPEC is determined to keep pumping oil vigorously despite the
resulting financial strain even on the policy's chief architect,
Saudi Arabia, alarming weaker members who fear prices may slump
further towards $20.
Any policy U-turn would be possible only if large producers outside
the exporters' group, notably Russia, were to join coordinated
output cuts.
OPEC and Russia could make "some sort of co-ordinated attempt to
reduce production", said Jonathan Barratt, chief investment officer
at Sydney's Ayers Alliance.
"The glut continues, but I do feel that it could be reversed quite
quickly given the change in interest rates in the United States,
which would indicate more demand."
The OPEC meeting should also include discussions about new supply
from Iran, according to analysts at Morgan Stanley.
Iran, once the second-largest OPEC producer after Saudi Arabia,
hopes to raise its crude exports by as much as 1 million barrels per
day within months once sanctions aimed at its nuclear program are
eased.
Iran on Saturday offered about 50 oil and gas projects to be
developed by foreign investors with local partners.
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On Monday, Reuters will publish its monthly oil price poll and its
OPEC oil production survey, giving an indication of market consensus
on the way ahead.
The end of the U.S. Thanksgiving holiday period will also mean a
return to the market of U.S.-based investors, a factor that will
likely increase trading volatility later on Monday, Global Risk
Management's Poulsen said.
Traders will also be watching for the U.S. non-farm payrolls report
due on Friday. A strong jobs report could seal the case for an
interest rate hike at the U.S. Federal Reserve's Dec. 15-16 meeting
and give an indication of the health of the economy.
Other events this week include the European Central Bank meeting on
Thursday where economists polled by Reuters expect the ECB to
announce monetary policy easing measures.
(Additional reporting by Christopher Johnson in London, Swetha
Gopinath in Singapore and Aaron Sheldrick in Tokyo; editing by Jason
Neely and Susan Thomas)
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