Oil prices on Tuesday slipped amid concerns over increasing supply after the leading oil producers delayed their talks on the 2021 output policy which could extend further production cuts as the Covid-19 pandemic continues to lower the fuel demand.

After dropping more than 1 per cent on Monday, opening trade December Brent crude was low 20 cents or 0.4 per cent at $47.68 a barrel by 0136 GMT, while the West Texas Intermediate was low 27 cents about 0.6 per cent at $45.07 a barrel, 0.4 per cent down from the previous session. Besides this, both the contracts surged about 27per cent in November, the biggest monthly gains since March after the coronavirus vaccine trials raised the hopes for the potential vaccine which could boost the oil demand.

OPEC+, the group includes the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other allies delayed talks on output policy for next year until Thursday, according to sources. It has been scheduled to hold its meeting on Tuesday after its failed discussions of key ministers to reach a consensus on Sunday. The alliance was considering to further extend the current production cuts for the first months of the next year, and a position was backed by the leader Saudi Arabia, sources said.