09:03 AM EST, 03/05/2024 (MT Newswires) -- Oil prices fell early on Tuesday, retreating back to the range it has traded for over the past four months despite OPEC+'s weekend extension of 2.2-million barrels of voluntary production cuts through June.

West Texas Intermediate crude oil for April delivery was last seen down US$0.73 to US$78.01 per barrel, while May Brent crude, the global benchmark, was down US$0.64 to US$82.16.

The drop is the second-straight session of weaker prices following the OPEC+ announcement on Sunday as prices remain firmly rangebound with the cartel's cuts offset by rising output from the United States and other western hemisphere countries and weak demand from China as a real-estate debt crisis weighs on its economy.

"Despite the firm and unequivocal show of unity and solidarity, the weekend's decision from the OPEC+ producer group to extend the current production levels throughout the first half of 2024 failed to inspire buyers and, apart from a brief rally, sellers dominated yesterday's session," PVM oil brokers noted.

Traders are also awaiting further word on when the Federal Reserve will begin lowering interest rates, a move expected to boost demand as the weight of high rates is taken off the economy. Fed chair Jerome Powell will begin two days of congressional testimony on Wednesday, which may offer more insight into the timing of rate cuts.