Premier League this weekend after crashing out of the Capital One Cup in mid-week.
The Black Cats were beaten 1-0 by local rivals Middlesbrough at the Stadium of Light to add more frustration to the start to their league campaign, which sees them 14th after drawing six of their opening eight fixtures.
And O’Neill believes his side are capable of better performances and puts current form down to a failure to create enough goal scoring chances.
He told Sky Sports: “I think that this season we haven’t created enough clear cut chances in many games. I think that’s the biggest thing.
“If you take a ratio of chances there is a bigger likely hood that if you, let’s say, create eight chances in a game there is a decent chance you are going to take one or two of those.
“If that is the case then we need to create more chances and I believe we have the ability to do so.”
O’Neill went on to confirm that he has every faith in his players and he believes he has the right resources to improve the side’s league position.
“I am far from having lost faith in any one. Quite the opposite. I believe we have the capabilities to do this.”
Sunderland host Aston Villa, who are without a league win in five and just two points off the bottom three, on Saturday afternoon.