Lower fuel costs could create savings for consumers, but economic threats posed by tariffs still a concern, a local economist said.

U.S. oil prices fell to $57 a barrel after the OPEC Plus cartel said this weekend that it would pump more oil.

Perceptions of oversupply among oil market participants from increasing OPEC+ output and uncertainty about the economic impact of tariffs have raised short-term oil price volatility, the U.S. Energy Information Administration said on Tuesday.

Prices plunged after OPEC and its allies agreed to increase output again, despite weak prices and an uncertain demand outlook.

Oil fell by more than $1 a barrel on Monday to settle at over four-year lows as an OPEC+ decision to expedite its output hikes stoked fears about rising global supply at a time when the demand outlook is uncertain.

Stocks are opening lower on Wall Street and crude prices are falling to a four-year low after the OPEC+ group of oil-producing nations said it plans to increase output. The S&P 500 slid 0.7% early Monday.