UPDATE 9-Oil up 1 pct after Saudis say ready to cooperate on prices

* Saudis pledge bolsters prices, some traders skeptical
* Rally in gasoline, ultralow sulfur diesel
* Broad commodities selloff hits oil price in early trade
* Oil traders worry about glut, widening WTI contango

(Adds latest market moves, lift from gasoline, ULSD rally)
By Barani Krishnan
NEW YORK, Nov 23 (Reuters) - Crude prices rose as much as 1
percent on Monday after Saudi Arabia's pledge to work on price
stability offset some worries about the global oil market glut.
A rally in gasoline and ultralow sulfur diesel (ULSD)
futures also bolstered the petroleum complex. Traders bought
those refined products amid strong demand for gasoline at pumps
and the onset of colder weather in Northeastern United States,
which should boost demand for heating oil, or ULSD.
Earlier in the session, a broader commodities selloff led by
copper and firmer dollar had weighed on oil. COM/WRAP USD/
Saudi Arabia said in a statement it was ready to work with
other oil producing and exporting countries to stabilize prices.

The Saudi remarks came as oil prices barely held above
2-1/2-month lows, and were greeted with a mix of enthusiasm and
skepticism. Despite similar pledges in the past, the Saudis and
other big OPEC producers have kept output high to maintain
market share, and crude prices have dropped 50 percent over the
past year.
OPEC's next meeting to set production targets is on Dec. 4.
Benchmark Brent futures LCOc1 were up 45 cents, or 1
percent, at $45.11 a barrel by 1:35 p.m. EST (1835 GMT). It rose
more than $1 on the Saudi statement, then surrendered those
gains to trade $1 lower before rebounding.
U.S. crude's West Texas Intermediate (WTI) futures CLc1
rose 16 cents, or 0.4 percent, to $42.06 a barrel.
"The Saudis' past promises on working for price stability
has led to nothing, so it wasn't surprising there was as much
disbelief as initial excitement over today's announcement," said
John Kilduff, partner at New York energy hedge fund Again
Capital. "But all said, they are the biggest movers in OPEC, so
their statement is having a positive impact."
Gasoline futures RBc1 jumped nearly 3 percent, the most in
nearly three weeks. ULSD HOc1 rose almost 2 percent.
Some remained unconvinced the rebound in oil would last,
pointing to the widening discount in nearby WTI versus
farther-dated contracts.
"The dramatic expansion in the WTI carrying charges since
early last month will remain as a major bearish portent that
will be keeping alive a test of the late August WTI lows," said
Jim Ritterbusch of Chicago-based oil consultancy Ritterbusch &
Associates.
WTI's front-month fell to $38.99 a barrel on Friday, trading
barely above its Aug. 27 low of $37.75.
Hedge funds and other big speculators have cut bullish
wagers on WTI to the lowest since August.