Oil prices edged lower on Tuesday as a stronger U.S. dollar and weaker global manufacturing data renewed concerns over energy demand. Traders also weighed OPEC+’s latest production plans and the impact of ongoing U.S. sanctions on Russian oil exports.
Brent crude fell 45 cents, or 0.7%, to $64.44 a barrel, while U.S. West Texas Intermediate (WTI) declined 49 cents, or 0.8%, to $60.56. Both benchmarks extended Monday’s slight losses.
“Crude futures are feeling pressure from a high dollar valuation and growing caution in equities,” said Dennis Kissler, senior vice president of trading at BOK Financial. “If economic data continues to weaken, it could eventually start to show up in fuel demand.”
The U.S. dollar climbed to a four-month high against the euro, making dollar-denominated commodities more expensive for holders of other currencies. Factory data from Japan and South Korea showed continued weakness in Asia’s manufacturing sector, the world’s largest oil-consuming region.
On the supply side, OPEC+’s plan to raise output by 137,000 barrels per day in December, followed by a pause in production increases during the first quarter of 2026, suggested the group is cautious about oversupply risks amid soft demand signals.
Investors are now looking ahead to the latest U.S. inventory figures from the American Petroleum Institute, with early forecasts calling for a small crude build.