The OPEC announcement over the weekend was widely seen as a plan to add back production from members’ current coordinated cuts.

Consumer expectations: Falling oil prices can lead to a general expectation of easing inflation among consumers, especially in a challenging economic environment when consumer budgets are tight. This can become a self-fulfilling prophecy, as businesses might lower prices preemptively based on the anticipated decline in demand or production costs.

Most stock markets in the Gulf were subdued in early trading on Tuesday on falling oil prices as traders worried about supply ticking up later in the year amid signs of weakening U.S. demand.

Oil prices fell Monday as the OPEC+ group of major crude producers signalled they would start to unwind output cuts later this year.