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STORY: The Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, agreed on Sunday to extend most of their oil output cuts into 2025 but left room for voluntary cuts from eight members to be unwound gradually, beginning in October.

Oil prices fell more than $1 a barrel on Tuesday on skepticism about the decision.

Brent crude futures were down, extending losses from a four-month low reached on Monday.

U.S. West Texas Intermediate crude futures also eased. WTI had fallen by 3.6% on Monday to settle near a four-month low.

The planned October unwinding adds jitters about oversupply in an environment where traders are already spooked about high interest rates hampering global economic activity. A steady flow of dim signals from major economies such as the U.S., China and Europe suggest that their appetite for oil may not be as healthy as hoped through the rest of the year.

O'Keefe said that while gas prices in the U.S. may "creep up as they would normally do in the summer," they could fall later in the year.