Oil prices are falling after increased reluctance to supply from OPEC +

Synopsis

Oil prices fell on Tuesday after rising to their highest level in years in the previous session following the decision by OPEC and its big allied  oil producers to maintain a reluctance to supply. Brent crude fell 3 cents to $ 81.83 a barrel at 0054 GMT after rising 2.5% on Monday. US West Texas Intermediate (WTI) oil fell 10 cents to $ 77.52 after rising 2.3% in the previous session.

TOKYO: Oil prices fell on Tuesday after rising to their highest level in years at the previous meeting due to the decision by OPEC and its major allied  oil producers to maintain a reluctance to supply.

Brent crude fell 3 cents to $ 81.83 a barrel at 0054 GMT after rising 2.5% on Monday. US West Texas Intermediate (WTI) oil fell 10 cents to $ 77.52 after rising 2.3% in the previous session.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, collectively known as OPEC +, said on Monday they would stick to an agreement to increase oil production only gradually, ignoring calls from the United States and India to limiting production as Boosting the world The economy is recovering, albeit unevenly, from the coronavirus pandemic.

Oil prices have already risen more than 50% this  year, a rise that has exacerbated inflationary pressures affecting oil-consuming nations  will undo the recovery from the pandemic.

The OPEC + decision  reflects “a lack of urgency within the group to increase production due to the expected surplus next year and limited capacity at key producers,” Barclays analyst Amarpreet Singh said in a note.

The overnight rise in crude prices “seems a bit excessive as ministers just confirmed the decision announced in July, but it shows how tight the market is,” Singh said.

Meanwhile, US crude  and distillate inventories are likely to have declined in the past week, according to a preliminary Reuters poll.

Five analysts polled by Reuters estimate that crude oil stocks fell by an average of about 300,000 barrels during the week ending October 1.

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