By: Mahmoud Gamal

Mubasher: Oil price futures declined on Wednesday after suffering losses for two day, as a result for the concern of the supply glut, after doubts aroused regarding the ability of OPEC and Russia to cut supplies while official data showed increased production.

By 04:15 GMT, Brent crude oil shed 0.6% or 31 cents to $53.62 per barrel, while West Texas Intermediate (WTI) futures decreased 67 cents or 0.65% to $50.6 per barrel.

The current declines are normal reactions after the news of OPEC’s production which recorded high levels last month, technical analyst, Zamil Al Otaibi, told Mubasher.

He added that OPEC will likely stick to the production quotas agreed on last week in January, doubting that the organization will abide by the quotas till the end of the first quarter of 2017.

Initial figures showed that OPEC's supply rose to 34.19 million barrels per day (bpd) in November from 33.82 million bpd in October.

Russia announced that its average oil production reached 11.21 million bpd in November, according to official figures released by the Russian ministry of energy.

On 30 November, OPEC agreed to cut its own production by 1.2 million bpd as of next January.

Non-OPEC oil producers are scheduled to meet in Vienna next Saturday, 10 December to finalize details of latest OPEC’s decision regarding oil production cuts.

The American Petroleum Institute (API) revealed on Tuesday that the US crude inventories decreased 2.2 million barrels last week.

Translated by: Sara Ghali