Petroleum prices edged lower on Wednesday as the decision by the Organization of the Petroleum Exporting Countries and their allies(OPEC+) to pause output hikes in the first quarter next year along with weak manufacturing data and a stronger dollar weighed on the market.
Brent crude futures fell 45 cents, or 0.69%, to close at $64.44 a barrel. U.S. West Texas Intermediate crude shed 49 cents, or 0.8%, to settle at $60.56 a barrel.
On Sunday, OPEC+ agreed to a small oil output increase for December and a pause in increases in the first quarter of next year.
Despite the current dip in oil prices, the sanctions on Russia’s Rosneft and Lukoil could continue providing some price support in the near term, said independent analyst Tina Teng.
Meanwhile the dollar hovered near a three-month high as a divided Federal Reserve - on whether or not to cut rates again in December - prompted traders to rein in interest rate cut wagers.
A higher dollar makes dollar-priced assets more expensive to those holding other currencies.
