Oil prices exhibited minimal variation on Tuesday, following three consecutive days of declines attributed to growing concerns over oversupply, particularly after OPEC+ sanctioned another significant output increase in September. However, the prospect of additional disruptions to Russian supply provided some support to the market. Brent crude futures remained steady at $68.76 per barrel as of 0036 GMT, whereas U.S. West Texas Intermediate crude registered a slight decline to $66.27 per barrel, reflecting a decrease of 2 cents, or 0.03%.

Both contracts experienced a decline exceeding 1% in the prior session, concluding at their lowest point in a week. The Organization of the Petroleum Exporting Countries and its allies, collectively referred to as OPEC+, account for approximately fifty percent of global oil production. In recent years, the group has implemented production cuts to bolster market stability; however, this year, it has initiated a series of rapid output increases aimed at reclaiming market share.

In its most recent resolution, OPEC+ reached an agreement on Sunday to increase oil production by 547,000 barrels per day for the month of September.The decision signifies a comprehensive and prompt reversal of the group’s most substantial segment of output reductions, totaling approximately 2.5 million bpd, which represents around 2.4% of global demand. However, analysts advise that the true volume re-entering the market is likely to be lower.

Simultaneously, the increasing U.S. demands for India to cease its purchases of Russian oil, as Washington explores avenues to pressure Moscow into a peace agreement regarding Ukraine, are heightening concerns about potential disruptions to supply flows. The President of the United States, Donald Trump, is indicating the possibility of implementing 100% secondary tariffs on purchasers of Russian crude oil. This comes in the wake of a 25% tariff on imports from India that was announced in July. India has emerged as the largest purchaser of seaborne crude from Russia, with imports reaching approximately 1.75 million barrels per day from January to June this year, reflecting a 1% increase compared to the same period last year. India has emerged as a significant purchaser of oil from the Kremlin following the 2022 invasion of Ukraine. Any disruption to those purchases would compel Russia to seek alternative buyers from a progressively limited pool of allies,” ANZ senior commodity strategist Daniel Hynes noted in a report. Market participants are closely monitoring any updates regarding the recent U.S. tariffs imposed on its trading partners, as analysts express concerns that these measures may hinder economic growth and suppress the expansion of fuel demand.