O'Neil's side make the short trip to Aston Villa on Saturday afternoon having accumulated just one point from their opening four Premier League fixtures.
As well as losing to Arsenal and Chelsea, Wolves held a lead over Newcastle United heading into the final quarter of last weekend's game at Molineux before succumbing to a 2-1 defeat.
With that setback being followed by a 3-2 reverse at Brighton & Hove Albion in the EFL Cup, O'Neil finds himself under pressure to deliver an upturn in fortunes.
O'Neil remains optimistic despite form
Wolves are currently one of the worst performing teams in the Premier League, winning just one of their most recent 14 fixtures in the top flight.
As many as 10 defeats have been posted during that period, the three draws in question coming against Nottingham Forest (twice) and Burnley.
Speaking to reporters at a press conference, the Englishman admitted that Wolves need to channel their energy in an effective way and acknowledge that there will be some "tough" moments in the Premier League.
O'Neil said, as quoted by BBC Sport: "There's a lot of frustration in the building at the moment. The fixtures are a difficult run but we've shown we've got good enough players and a good enough way of doing things that we're giving ourselves opportunities in all of the games to take results.
"We're frustrated with little bits and pieces. There's lots that go on in a 97-minute game, and it's just a couple of small bits that are costing us.
"It's just little setbacks. There's just a need to find a way to do better. We can still be competitive. We need to find a way to make sure it goes our way."
He added: "It's obviously tough because to have the game plan work so well in such a tough game [against Newcastle] and to take nothing from it is a tough feeling. We were all disappointed with that, but we knew the Brighton game was coming quickly and I knew the lads needed me to be able to get them ready. It's the same with Aston Villa.
"I enjoy that part of the job, I don't shirk away from any of these challenges or any questions around how tough the run is.
"I am comfortable with all of that and I'm comfortable the group understand well enough now that in a Premier League season, there will be some tough moments. We don't accept them, we're not stood here saying it is acceptable to lose."
What is the injury situation?
O'Neil also revealed that Toti Gomes and Rayan Ait-Nouri remain as big injury doubts having barely trained throughout the week.
Boubacar Traore has also been ruled out until Christmas having undergone surgery on a knee injury.