Energy Prospectus

Investing.com - Crude oil futures rose on Tuesday as Saudi Arabia's pledge to work towards oil price stability remained in focus.

The world's biggest oil producer said Monday it is prepared to use all measures necessary to ensure a stable oil market and that it is ready to cooperate with OPEC and non-OPEC producers in order to stabilize prices.

Brent oil tacked on 0.8% to trade at $45.20 a barrel at 7:37 AM Eastern Time.

U.S. crude prices rose to $42.10 a barrel on the New York Mercantile Exchange.

The American Petroleum Institute will release its inventories report later in the day amid ongoing concerns over a domestic supply glut.

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.

Oil prices rallied sharply on Tuesday, after Turkish fighter jets shot down a Russian warplane near the Syrian border, fueling concerns over a disruption to supplies from the Middle East.

Turkish fighter jets shot down a Russian warplane near the Syrian border after it violated Turkey's airspace on Tuesday, a Turkish military official said. However, Russia's defense ministry said the downed fighter jet did not violate Turkish airspace.

Russian President Vladimir Putin said the act was "a stab in the back" carried out by the accomplices of terrorists and that the incident would have serious consequences for Moscow's relations with Ankara.

Oil traders are sensitive to risky geopolitical news coming out the Middle East.

There are fears that an escalation of hostilities could set off a conflict across the region and send oil prices skyrocketing. Countries in the Middle East were responsible for nearly 35% of global oil production last year.

> French jets from the Charles de Gaulle aircraft carrier struck Islamic State targets in Iraq and Syria on Monday while Britain offered France the use of an air base in Cyprus to hit the militants group behind the Paris attacks.
> Islamist militants killed four people in an attack on a hotel in Egypt's North Sinai where election judges were staying, the military and Interior Ministry said on Tuesday.
> At least five guards in Libya allied with the self-declared government controlling Tripoli were killed and 16 others wounded when a car bomb exploded at a checkpoint east of the capital, a security source said on Tuesday.

The neighborhood just keeps getting worse.