The West Texas Intermediate for October delivery added 1 cent to settle at 86.88 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for November delivery decreased 2.91 dollars to close at 92.83 dollars a barrel on the London ICE Futures Exchange.
Strength in the U.S. dollar continued to present a headwind. The dollar index, which measures the greenback against six major peers, rose 0.35 percent to 110.2140 in late trading on Tuesday. Historically, the price of oil is inversely related to the price of the U.S. dollar.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, on Monday decided to reduce oil production in October by 100,000 barrels per day. This will reverse the September production hike of the same amount that was agreed about one month ago.
Despite the relatively trivial amount, the decision on Monday "sent a message that the oil exporting group is willing to defend the oil price," said UBS analysts.
"It became clear yesterday that OPEC+ is not willing to accept any more pronounced price slide, and is likely to implement further production cuts if it believes them to be necessary," energy analysts at Commerzbank Research said Tuesday in a note.
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