The black gold received fresh impetus and rebounded higher on Monday on the back of comments from Saudi Arabia to co-operate with other oil producers to bring price-stability in the markets.
The Saudi statement came as oil held barely above 2-1/2-month lows, and was greeted with a mix of enthusiasm and scepticism.
The loonie is likely to find resistance around 93.00 against the yen, 1.32 against the greenback, 1.40 against the euro and 0.95 against the aussie.
Front-month Brent futures for January had climbed 12 cents at US$44.30 a barrel as of 0613 GMT, following the previous session's 4 cent gain.
Refinery rates rose while inventories at Cushing, Oklahoma, the delivery point for WTI and the biggest USA oil- storage hub, increased for a second week to 56.9 million barrels. "Saudi Arabia hasn't said they won't cut, but that doesn't mean they are going to increase production either - it's very loose news". If the OPEC continues with its stance to pump as much as oil it can - which Mr. Zanganeh sees as the probable outcome of the December meeting - it would further lower oil prices.
The upcoming year poses threats for oil producers because Iran's sanctions would be lifted and global economy would witness boost in oil exports from Iran.
OPEC will meet on December 4 to review their output strategy.
Money managers' net-long position in WTI crude fell 17 percent in the week ended November 17 to the lowest in more than two months, data from the U.S. Commodity Futures Trading Commission show.
Key OPEC members led by Saudi Arabia prefer to maintain market share by keeping output high amid competition from non-OPEC producers like the United States.
"I still think the primary factors in the market are the excess supplies and worries that we could have weak fuel demand growth next year", Mr. McGillian said.
Oil prices rose on Tuesday after the Turkish military shot down a Russian jet fighter along the Syrian border and the dollar weakened. "The speculative market is the one that is controlling the market", Del Pino said. The European benchmark crude traded at a $2.77 premium to January WTI.
