Oil steady after smaller than expected boost to OPEC+ output

LONDON, Oct 7 (Reuters): Oil prices edged slightly lower on Tuesday as investors weighed a smaller than expected increase to OPEC+ output in November against a backdrop of possible oversupply.

Brent crude futures were down 39 cents, or 0.6 per cent, to $65.08 a barrel at 1321 GMT. US West Texas Intermediate crude was down 38 cents, or 0.62 per cent, to $61.31.

Oil prices are holding up, with the market looking if higher oil inventories on water will translate into rising OECD oil stocks, while preliminary data from India pointed to strong oil demand in September, said UBS analyst Giovanni Staunovo.

Both contracts settled more than 1 per cent up in the previous session after the Organization of the Petroleum Exporting Countries plus Russia and some smaller producers, together known as OPEC+, decided to increase collective oil production by 137,000 barrels per day (bpd), starting in November.

The move was in contrast to market expectations for a more aggressive increase, a sign that the group remains cautious in light of predictions for a global supply surplus in the fourth quarter as well as next year, said ING analysts.