Oil prices have slipped to six-week lows due to high global inventories and increasing doubts over OPEC's ability to comply with the agreed output cuts. 

Brent crude oil and the US light crude dropped by 30 cents to $46.70 a barrel and $44.43 per barrel respectively to their nearly six-month lows, reported Reuters.

Since late last month, oil prices have dropped by more than 12%. 

OPEC and other producers have agreed to restrict output and cut production by 1.8 million bpd to March next year to soak surplus crude from the market.

"Since late last month, oil prices have dropped by more than 12%."

However, oil stocks are near record highs in many regions across the world as traders anticipate further fall in prices.

OPEC members Nigeria and Libya are exempted from the oil curb deal, and have raised their production, which largely undermined the oil cartel’s efforts to rebalance the market.

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By GlobalData

The continuous rise in the US production further negated the impact of restriction in oil production.

The US Government's Energy Information Administration has forecasted domestic output growth to 460,000bpd this year revising the earlier prediction of a decline of 80,000bpd in December.

The International Energy Agency stated that it expects oil supplies to be higher than demand in the next year, despite a rise in global consumption.