Oil prices edged lower on Tuesday after the Organization of the Petroleum Exporting Countries and its allies, OPEC+, agreed to pause planned output increases in the first quarter of next year, signaling potential oversupply in the market.

By 05:05 AM WAT, Brent crude futures fell 15 cents, or 0.2%, to $64.74 a barrel, while U.S. West Texas Intermediate (WTI) crude slipped 14 cents, or 0.2%, to $60.91 per barrel. The OPEC Basket price dropped 26 cents, or 0.39%, to $66.72 per barrel.

On Sunday, OPEC+ approved a modest production increase for December but decided to hold off on further output hikes in early 2025. Since April, the group has raised production targets by around 2.9 million barrels per day roughly 2.7% of global supply but slowed the pace from October amid predictions of oversupply.

Despite these concerns, some executives from Europe’s largest energy companies have challenged forecasts of a surplus next year, citing rising demand and easing production constraints. James Danly, deputy secretary of the U.S. Department of Energy, also dismissed the likelihood of an oil glut in 2026.

Sources said Russia pushed for the pause in output increases, citing difficulties in boosting exports under Western sanctions. In October, the U.S. and Britain imposed sanctions on Russia’s major oil firms, Rosneft and Lukoil.

Market watchers are now focused on the latest U.S. inventory data from the American Petroleum Institute (API), expected later in the day. A preliminary Reuters poll suggested U.S. crude stockpiles may have increased last week.