Iraqi state oil marketer Somo issued a rare statement denying there is a price war within the Opec exporter group, saying recent reductions to its official selling prices (OSPs) were influenced only by the market.

The statement, which follows steep cuts to Iraq's January OSPs this week, said recent reductions made by Somo to customers in Asia and the United States were in line with the underlying crude and refined product markets.

The "cut was fairly in line with market's structure and hence, there is no basis for a 'price war'", the statement from Somo director general Falah Alamri said.

Traders and analysts have said members of the Organization of the Petroleum Exporting Countries are competing to cut prices in a bid to hold on to oil market share, with fast-growing US shale output pushing world oil benchmark prices 45 per cent lower since June.

Gulf oil producers led by Saudi Arabia blocked calls for an output cut from some poorer members at OPEC's meeting late last month, arguing the group needs to undermine the profitability of North American producers.

Since the meeting benchmark Brent crude oil prices have slid by almost 20 per cent.Saudi Arabia and Kuwait also reduced crude OSPs this month.

Saudi Arabian Oil Minister Ali Al-Naimi on Wednesday shrugged off suggestions that the world's biggest crude exporter might cut production to reverse the deepest price slump in years, saying the kingdom's output had remained steady through last month. - Reuters