Brent crude futures settled down 2 cents, or 0.03%, to $65.45 a barrel

Oil prices steadied on Tuesday as investors weighed a smaller-than-expected rise to OPEC+ output in November against signs of a potential supply glut.

Brent crude futures settled down 2 cents, or 0.03%, to $65.45 a barrel.

The contract settled more than 1% 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 raise collective oil production by 137,000 barrels per day, 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.

Market sentiment remains subdued, in particular after Saudi Arabia opted to keep the official selling price of its flagship crude to Asia unchanged, defying analyst expectations for an increase, StoneX analyst Alex Hodes said in a note on Tuesday. The Abu Dhabi National Oil Company has set the November official selling price of its benchmark Murban crude at $70.22 a barrel, it said on Tuesday, up from October’s OSP of $70.10.

On the demand side, India’s fuel demand rose 7% year-on-year in September, according to data from the Petroleum Planning and Analysis Cell of the Oil Ministry.

China is building oil reserve sites at a rapid clip as part of a campaign to boost stockpiles, according to public data, traders and industry experts.

Global oil inventories are also expected to rise through next year as non-OPEC+ countries lead oil output growth, according to the U.S. EIA, putting significant downward pressure on commodity prices in the months ahead.

JPMorgan said global oil inventories, including crude stored on water, have risen every week in September, adding 123 million barrels during the month.