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Oil prices retreated on Tuesday as disappointing manufacturing data and a stronger dollar weighed on demand. OPEC+’s decision to pause output increases in early 2026 added to concerns of potential oversupply.

Brent fell 45 cents, or 0.7%, to settle at $64.44 a barrel. 

WTI dropped 49 cents, or 0.8%, to $60.56 a barrel.

In Asia, Japan’s manufacturing sector contracted in October at its fastest pace in 19 months, according to a private survey, highlighting fragile industrial activity across major economies. The weaker data added pressure on oil markets already grappling with a strong US dollar, which makes crude more expensive for holders of other currencies.

Over the weekend, OPEC+ announced plans to maintain current production levels through the first quarter of 2026, reflecting caution amid expectations of a potential global crude surplus.

Meanwhile, Russian seaborne crude exports have fallen sharply — the steepest decline since January 2024 — in the wake of fresh Western sanctions. Cargo discharges were hit harder than loadings, leading to a temporary buildup of oil stored on tankers.

Some market observers remain doubtful that the latest sanctions will significantly curb Russian crude flows, noting that the country continues to find alternative buyers despite mounting restrictions. Analysts also said that initial price gains following US sanctions on Lukoil and Rosneft have largely faded as traders reassess the broader demand outlook.

Written: Farid Muzaffar