Oil prices retreat on supply worries

Oil prices fell Thursday as traders worried that global crude supply might surpass demand.

Saudi Arabian Oil Co. lowered its official selling price to Asia next month to a discount of 2 U.S. dollars, according to an e- mail from the company Thursday.

Analysts thought that Saudi Arabia does not intend to cut production but want to let the market decide the crude prices.

Saudi Arabia won't give up market share "at this time for anybody," said Prince Turki Al-Faisal, the kingdom's former intelligence chief, at a conference in London Tuesday.

The Organization of Petroleum Exporting Countries (OPEC) didn't cut its output during last Thursday's meeting in Vienna. OPEC members pump a third of the world's crude. The group maintained its collective production ceiling of 30 million barrels a day.

OPEC said, ample supply, moderate demand, a stronger U.S. dollar and uncertainties about global economic growth have been key factors in this recent price trend. In addition, as OPEC has noted in the past, the impact of speculative activity in the oil market has also been an important factor.

Analysts regarded the OPEC decision very bearish to crude prices. As the organization keeps production steady, crude prices could fall further.

OPEC pumped 30.56 million barrels of crude every day in November, exceeding its official target for a sixth straight month, according to a survey from Bloomberg.

Light, sweet crude for January delivery moved down 57 cents to settle at 66.81 U.S. dollars a barrel on the New York Mercantile Exchange,while Brent crude for January delivery lost 28 cents to close at 69.64 dollars a barrel.