Oil prices fall on global growth concerns

SINGAPORE, Dec 05 (Reuters): Oil prices fell on Wednesday, pulled down by a US supply glut and a drop in stock markets as China's government warned of increasing economic headwinds and as Japan was expected to report another quarter of GDP contraction.
International Brent crude oil futures LCOc1 were at $61.14 per barrel at 0705 GMT, down 94 cents, or 1.5 per cent, from their last close.
US West Texas Intermediate (WTI) crude futures CLc1 were at $52.44 per barrel, down 81 cents, or 1.5 per cent.
Reuters technical commodity analyst Wang Tao said WTI could soon test support at $51.75 per barrel, while Brent was threatening to drop below $60 per barrel again soon.
Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said US crude inventories rose by 5.4 million barrels in the week to Nov. 30, to 448 million barrels, in a sign that US oil markets are in a growing glut.
Another report from Vienna adds: Saudi Arabia is seeking to persuade Russia on Wednesday to cut oil production substantially with OPEC next year in an attempt to arrest a decline in the price of crude and prevent another global glut.
Russian Energy Minister Alexander Novak was due later in the day to meet his Saudi counterpart Khalid al-Falih, whose country leads the Organisation of the Petroleum Exporting Countries (OPEC).
OPEC holds policy talks on Thursday in Vienna, followed by a gathering with allies including Russia on Friday.
Saudi Arabia has indicated it wants OPEC and its allies to cut output by at least 1.3 million barrels per day, or 1.3 per cent of global production.
Riyadh wants Moscow to contribute at least 250,000-300,000 bpd to the cut but Russia insists the amount should be only half of that, OPEC and non-OPEC sources said.
"It is not easy but we will always work together with our colleagues," United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui told reporters when asked about Russia's position.
A source close to the Russian Energy Ministry said: "No one is eager to cut unless there is an emergency. It is the United States where we are seeing the bulk of the increase in oil output. OPEC and Russia will be very careful about voluntary 'blood letting'."