Oil slips on oversupply concerns and stronger dollar

Oil prices fell more than 1% on Tuesday as the OPEC+ decision to pause output hikes in the first quarter of next year, along with weak manufacturing data and a stronger dollar, weighed on the market.

Brent crude futures fell 81 cents, or 1.25%, to $64.08 a barrel by 1310 GMT. U.S. West Texas Intermediate crude was down 84 cents, or 1.38%, at $60.21.

"The succession of poor manufacturing PMIs from Asia and then the U.S. ISM is a worry for oil demand. So is the ever present market upsetting tariff threat," said John Evans, analyst at PVM Oil Associates.

“The renaissance of the U.S. dollar is another suppressant for oil prices at the moment and we anticipate a resumption of a grind lower in the here and now.”

On Sunday, the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, agreed to a small oil output increase for December and a pause in increases in the first quarter of next year.

Additionally, the boost to oil prices from the U.S. sanctioning Russian energy companies Lukoil and Rosneft was fading, chief analyst of commodities Bjarne Schieldrop at SEB Research said in a note.