Saudi Arabia slashes January crude oil prices for Asia and US
A file photograph of a gas flame at Khurais oilfield in Saudi Arabia.Reuters

Oil traded close to its highest level in two weeks as the US economy recorded its fastest rate of expansion in more than a decade.

US gross domestic product expanded by 5% in the third quarter, its fastest growth rate since the same quarter in 2003, according to revised US Commerce Department data.

The updated data sparked a burst of confidence throughout the world's biggest economy, with stocks on the Dow Jones index soaring to record highs and investors betting on increased fuel demand in the US.

Crude oil is heading for its biggest annual decline since 2008 as global supplies outpaced demand, with US shale producers ramping up output to record levels.

Traditional oil producers like the Organisation of Petroleum Exporting Countries (OPEC) have maintained production levels, contributing to the downward pressure on prices.

Meanwhile, global demand has remained weak throughout 2014. A combination of these factors has caused prices to fall around 40% since the summer.