Investing.com -- U.S. crude futures inched down on Monday, amid a stronger dollar as investors continue to await Friday's critical OPEC meeting for potential shifts in supply-demand dynamics on global energy markets.
On the New York Mercantile Exchange, WTI crude for January delivery traded in a broad range between $41.52 and $42.60 a barrel on Monday, before settling at $41.63, down 0.09 or 0.20% on the day. After jumping above $42 in U.S. morning trading, U.S. crude futures pared earlier gains in the afternoon session reversing territory just before the close. Despite a significant rally in late-November, WTI crude futures still closed the month down by roughly 9%.
On the Intercontinental Exchange (ICE), brent crude wavered between $44.51 and $45.74 a barrel before closing at $44.58, down 0.27 or 0.59% on the session. North Sea brent futures ended the month with a four-day losing skid, closing November down by approximately 8.5%. Meanwhile, the spread between the international and U.S. domestic benchmarks of crude stood at $2.95, below Friday's level of $3.12 at the close of trading.
Any fluctuations in crude prices this week are expected to be minor before OPEC's pivotal meeting on Friday in Vienna. Earlier this month, Ali bin Ibrahim Al-Naimi, the Saudi Arabian minister for petroleum and mineral resources, indicated that the world's largest crude exporter is ready to use all tools necessary in order to reduce instability in energy markets worldwide.
Last November, OPEC rattled markets when it left its production ceiling above 30 million barrels per day. The position triggered an extended battle with U.S. shale producers for market share, flooding markets with a glut of oversupply. As a result, crude futures have slumped by more than 40% over the last year spending the majority of 2015 near lows not previously seen since the Financial Crisis.
Elsewhere, U.S. president Barack Obama and Russia president Vladimir Putin spoke for approximately 30 minutes on Monday on the sidelines of United Nations Climate Change Conference outside of Paris. Obama expressed regret over last week's downing of a Russian fighter jet by Turkey, while the leaders both discussed tensions in Syria related to the nation's civil war, according to multiple reports.
Crude prices are sensitive to any signals of heightened geopolitical instability in the Middle East.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, jumped more than 0.25% to an intraday high of 100.35. The index, which is up by nearly 15% over the last year, is approaching a yearly high of 100.38 from March 13.
Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.