TOKYO, Reuters – After climbing to the highest level in many years during the previous session due to OPEC’s decision to keep supply under control and the decision of allied oil producers, oil prices fell on Tuesday.

The price of oil dropped 3 cents to $81.83 per barrel at 0054 GMT. However, it had increased 2.5% on Monday. U.S. West Texas Intermediate Oil (WTI) dropped 10 cents at $77.52, having gained 2.3% over the previous session.

The Organization of the Petroleum Exporting Countries and its allies (OPEC+), said Monday they will continue an agreement to gradually increase oil production, ignoring the calls of the United States of India to do so as the world recovers from the outbreak of coronavirus.

The oil price has risen more than 50% in the past year. Inflationary pressures have increased so much that countries that consume crude oil are worried that this will slow down recovery from the pandemic.

OPEC+’s decision to suspend production due to an expected surplus in next year, and the limited capacities with key producers reflect a “lack of urgency” within the organization. Barclays Amarpreet Singh (LON) said it in a memo.

The overnight crude price jump “looks a bit outsized given the ministers just reaffirmed the decision announced in July but it shows how tight the market is”, Singh said.

A preliminary Reuters poll suggests that oil and distillate inventories will have declined over the past week. [EIA/S]

Five Reuters analysts surveyed estimated that crude oil inventories fell by an average of 300,000. barrels during the week ending Oct. 1.