Oil prices decline with oversupply concerns

By Ovunc Kutlu

ANKARA (AA) - Crude oil prices begun Thursday with losses as the glut of supply in the global oil market continues to worry investors despite top crude exporter Saudi Arabia cutting oil exports.

International benchmark Brent crude was trading at $54.17 per barrel at 0630 GMT with a 0.9 percent decline after it closed Wednesday at $54.69 a barrel.

American benchmark West Texas Intermediate saw prices of $45.55 a barrel at the same time, posting a 0.5 percent loss, from the previous closing price of $45.80 per barrel.

International media outlets reported late Wednesday that the world's biggest crude oil exporter, Saudi Arabia, lowered its crude exports by 500,000 barrels per day (bpd) in December.

Following the release of these reports, Brent crude rose by 1.6 percent to climb as high as $56.56 a barrel on Wednesday, but later lost those gains.

Saudi-led OPEC and its allies, including Russia, agreed on Dec. 7 to curb their total oil production by 1.2 million bpd starting from Jan. 1 in order to lower the glut of supply in the global oil market and push crude prices higher.

However, oversupply in the market still remains high with output from the top three crude producers in the world -- the U.S., Russia and Saudi Arabia -- reported at their all-time highest levels.

The U.S.' crude production climbed in November to 11.7 million bpd to surpass Russia and Saudi Arabia to take the world's top spot.

In October, Russia's oil output reached 11.4 million bpd, but they agreed to trim 2 percent from this level, equivalent to around 228,000 bpd.

Saudi Arabia's crude production stood at 10.7 million bpd in October, but they conceded to lower this to 10.2 million bpd for January -- a cut of 500,000 bpd.