Investing.com - Oil prices rebounded from earlier losses to spike higher on Monday, after Saudi Arabia said it is prepared to use all measures necessary to ensure a stable oil market.
The world's biggest oil producer added that it is ready to cooperate with OPEC and non-OPEC producers in order to stabilize prices.
On the ICE Futures Exchange in London, Brent oil for January delivery tacked on 62 cents, or 1.4%, to trade at $45.28 a barrel during U.S. morning hours. Prices fell by as much as 2.4% earlier to a session low of $43.59 as oversupply concerns remained a factor for oil markets.
Elsewhere, crude oil for delivery in January on the New York Mercantile Exchange inched up 15 cents, or 0.35%, to trade at $42.05 a barrel after being down by as much as 3.5% earlier in the day.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $3.23 a barrel, compared to $2.76 by close of trade on Friday.
The oil market has been on the defensive in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.
Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.
OPEC will meet on December 4 to review their output strategy. Saudi Arabia and other Gulf OPEC members have recently indicated they will continue to stick to their policy of defending market share by keeping production high.
The possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, further weighed.