Baghdad: Oil prices fell on Tuesday following the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to suspend production increases in the first quarter of next year, indicating a potential supply glut.

According to National Iraqi News Agency, Brent crude futures saw a decrease of 15 cents, or 0.2%, falling to $64.74 a barrel by 04:05 GMT. Simultaneously, U.S. West Texas Intermediate crude futures also experienced a decline, dropping 14 cents, or 0.2%, to $60.91 a barrel.

The OPEC+ alliance, which comprises OPEC and its allies, agreed on Sunday to implement a small production increase for December while opting to halt additional increases in the first quarter of the upcoming year. Since April, OPEC+ has raised its production targets by about 2.9 million barrels per day, accounting for approximately 2.7% of global supply. However, the alliance has decelerated the pace of these increases since October due to expectations of an oversupply in the market.