Crude oil futures ended lower on Tuesday amid concerns about oversupply, which overshadowed the positive sentiment from OPEC's decision to pause production hikes for the first quarter of 2026. OPEC cited seasonality and historically weaker demand in the first quarter of any year as the reason behind its decision. The decision by OPEC+ was also driven by oversupply concerns and reports of slow demand growth for 2025 and 2026 by International Energy Agency (IEA), last month. The IEA had projected a surplus of nearly 4 million barrels per day next year.
Benchmark crude oil futures for December declined $0.49 or 0.80% at $60.56 a barrel on the New York Mercantile Exchange. Brent crude for January delivery decreased $0.45 or 0.69% to settle at $64.44 a barrel on London's Intercontinental Exchange.
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