Doha: Oil prices declined on Tuesday as investors interpreted OPEC+'s decision to pause planned output increases in the first quarter as a sign of potential oversupply in the market. Brent crude futures fell $0.15, or 0.2%, to $64.74 a barrel, while US West Texas Intermediate (WTI) crude dropped $0.14 or 0.2% to $60.91 a barrel.

According to Qatar News Agency, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed on Sunday to a modest production increase for December, with a pause in further hikes during the first quarter of next year. This decision reflects OPEC+'s cautious approach to managing the global oil supply amid concerns of an impending surplus.

OPEC+ has raised output targets by approximately 2.9 million barrels per day since April, which corresponds to about 2.7% of global supply. However, the group began slowing the pace of increases in October in response to forecasts predicting a growing supply surplus. The recent decision to pause further hikes is seen as a strategic move to prevent market instability.