08:48 AM EDT, 08/05/2025 (MT Newswires) -- Oil prices fell for a fourth day early on Tuesday as traders focus on rising supply and weaker demand as growth slows.

West Texas Intermediate crude oil for September delivery was last seen down US$0.83 to US$65.46 per barrel, while October Brent oil was down US$0.80 to US$67.96.

The drop follows on OPEC's weekend decision to complete the return of 2.2-million barrels per day of production cuts to market with a final 548,000 barrels per day tranche in September. The cartel, which had originally planned to return the cuts in 18 monthly tranches instead opted to reverse them over six months.

The additional supply comes as major economies adjust to U.S. tariff policies, while production outside OPEC is also on the rise, pushing up global oil inventories.

"Fundamentals point towards a meaningfully oversupplied market by the fourth quarter with us continuing to view global inventories (including China) as the most important to watch over the balance of the year," Tudor, Pickering, Holt analyst Matt Portillo wrote.

U.S. threats to impose secondary tariffs on buyers of Russian oil are offering some support to oil prices. President Donald Trump last week said India, one of the largest customers for Russian exports, would face sanctions if it continues to buy oil from Moscow.

"Donald Trump has so far failed to deliver on his campaign promise to end Russia's invasion of Ukraine. However, his patience appears to be wearing thin. In a reversal, he recently threatened to tighten the sanction screw further by imposing secondary embargoes on those dealing in Russian energy," PVM Oil Associates noted.