Oil prices edged lower on Tuesday amid growing concerns of oversupply, as OPEC+ proceeded with another significant output increase despite signs of weakening global demand.
Brent crude futures slipped by 11 cents, or 0.16%, to $68.65 per barrel by 0424 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell 12 cents, or 0.18%, to $66.17 a barrel.
The latest dip marks the fourth consecutive session of losses for both benchmarks, following Monday’s decline of over 1%, which saw prices close at their lowest in a week.
Analysts attribute the downward trend to the recent decision by the Organization of the Petroleum Exporting Countries and allies (OPEC+) to raise oil production by 547,000 barrels per day in September, further straining the market already grappling with sluggish demand.
“Extra capacity from OPEC+ is acting as a buffer for any shortcomings in Russian barrels,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova. This dynamic is currently overshadowing the potential for tighter supply stemming from U.S. sanctions on Russian oil.
While geopolitical factors remain influential, the market appears increasingly sensitive to production changes from OPEC+, especially as global economic indicators point to a possible slowdown in energy consumption.
