WASHINGTON (dpa-AFX) - Oil extended a two-day drop on Tuesday as investors weighed signs of a glut and the fallout from U.S. sanctions on Russian producers.
Benchmark Brent crude futures fell 1.6 percent to $63.88 a barrel in European trade, while WTI crude futures were down 1.6 percent at $60.32.
Oil prices will moderate in the next days and weeks to come because of growing production coming from the Americas, OPEC+'s change in policy to increase output and slowing demand growth, International Energy Agency Executive Director Fatih Birol said in an interview on Bloomberg Television.
The oil market will be in surplus as output from the 'American quintet' - the U.S., Canada, Brazil, Guyana and Argentina - outpaces the growth in demand, largely driven by China's pivot away from heavy industry and combustion vehicles, Birol said.
Because of surplus capacity, the effect of sanctions on oil-exporting countries will be limited, he added.
Meanwhile, Reuters reported citing sources that OPEC+, the world's largest grouping of oil-producing nations, is leaning towards a modest output boost in December.
It was said the oil cartel is likely to agree on Sunday to increase December output targets by another 137,000 barrels per day (bpd).
Traders now await the American Petroleum Institute (API) weekly crude oil stock report later in the day for further direction.
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