The price of Brent crude oil further declined to a five-year low of $65.29 a barrel before increasing slightly to around $66.
Reuters reported that Brent crude for January delivery fell as low as $65.29, its weakest since September 2009, while US crude was up 23 cents at $63.28 a barrel.
OPEC’s ability to manage supplies was affected by increasing US shale production, with a large oil glut now expected in early 2015.
A UAE oil official from was quoted by Reuters as saying that supply and demand will set the price of oil in coming months.
Industry sources said Saudi Arabia may keep crude sales at full contracted volumes for Asian term buyers in January.
The head of Kuwait’s national oil company said oil will remain around $65 a barrel in coming months.
Norway-based brokerage DnB Markets said that abundant supplies may push the price of oil down to the $50 to $60-bracket in the first half of 2015.
New US projections reveal that oil production from the country’s big three shale plays should increase by more than 100,000 barrels per day by January.
The majority of shale firms are, however, planning to make deep cuts to investments for 2015.