Oil prices declined have fallen as Saudi Arabia announced that it would increase output in order to address demand.

Brent crude fell 63 cents at $64.48 a barrel, while the US light crude dropped 77 cents at $60, Reuters reported.

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Middle Eastern exporter Saudi Arabia is holding discussions with buyers in India to supply additional crude.

This means that the country, which is the second leading producer of oil, produced record 10.3 million barrels per day oil in May.

"The dollar is gaining some ground against the euro. If anything, that’s bearish for oil."

Following news that the International Monetary Fund withdrew debt talks with Greece, the US dollar value strengthened against the euro, which slipped 0.2% in early trade, making oil dearer for buyers in other currencies.

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PVM Oil Associates oil analyst Tamas Varga told the news agency: "The dollar is gaining some ground against the euro. If anything, that’s bearish for oil."

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In 2015, oil demand is expected to increase globally more than expected due to economic recovery as well as a relatively cold winter in the northern hemisphere, the International Energy Agency said.

JBC Energy analysts said that the increase may be witnessed only during the first half of 2015.

Crude oil purchases by Japan’s big utilities in May slipped 47.4% as against the same month in 2014.