Oil prices fell in Asian trading on Tuesday, with both major benchmarks posting slight declines.
Brent crude futures slipped by 12 cents (0.2%), closing at $63.94 per barrel, while U.S. West Texas Intermediate (WTI) decreased by 14 cents (0.2%) to settle at $59.99 per barrel. In the previous session, both benchmarks had gained almost 40 cents.
OPEC+ Production Plans and Geopolitical Developments
OPEC+ has increased its December production target by 137,000 barrels per day, while also agreeing to pause further increases during the first quarter of next year.
Meanwhile, U.S. sanctions have taken effect on Russian oil companies Rosneft and Lukoil, triggering force majeure at Lukoil’s West Qurna-2 field in Iraq. Bulgaria is also preparing to seize its Burgas refinery, owned by Lukoil, as part of compliance with sanctions.
Rising Inventories and Asian Market Pressure
Oil storage levels in Asia have doubled in recent weeks, with China and India facing import constraints due to sanctions. As a result, some refineries in the region have been forced to turn to Middle Eastern supplies.
Analysts warn that if China continues diverting Russian oil into its strategic reserves and India delays new purchases, global oil prices may remain under pressure.
