Oil prices slipped about 2% on Tuesday, marking a third straight day of declines as investors considered the impact of U.S. sanctions against Russia's two biggest oil companies on global supply, along with a potential OPEC+ plan to raise output.

Brent crude futures settled down $1.22, or 1.9%, to $64.40 a barrel. U.S. West Texas Intermediate crude futures settled down $1.16, or 1.9%, at $60.15.

Brent and WTI last week registered their biggest weekly gains since June, reacting to U.S. President Donald Trump's decision to impose Ukraine-related sanctions on Russia for the first time in his second term, targeting major oil companies Lukoil and Rosneft.

The U.S. government has provided written assurances that the German business of Russia's Rosneft would be exempt from the sanctions because the assets are no longer under Russian control, Germany's economy minister said.

"Trump giving Germany this waiver gives the impression that there could be more wiggle room on these sanctions, so this is taking away some of the immediate concerns that supplies could dramatically tighten. We definitely saw some risk-off (trading) today," said Phil Flynn, senior analyst with Price Futures Group.

The effect of sanctions on oil-exporting countries will be limited because of surplus capacity, Fatih Birol, the executive director of the International Energy Agency, said on Tuesday.

Following the U.S. sanctions, Russia's second-largest oil producer, Lukoil, said on Monday it would sell its international assets.

This move is the most consequential action so far by a Russian company in the wake of Western sanctions over Russia's full-scale war in Ukraine, which started in February 2022.

Moscow-headquartered Lukoil accounts for around 2% of global oil output.

Source; Investing.com