Oil rises as Saudi Arabia says it is comfortable with rising prices

LONDON (Reuters) – Oil prices firmed on Tuesday after Saudi Arabia said it was comfortable with a higher price range before a meeting between the main producing countries of Algeria.

The LCOc1 futures on Brent were up $ 1.03 a barrel to $ 79.09 a barrel at 0923 GMT, after reaching $ 79.32.

US West Texas Intermediate (WTI) CLc1 crude was up 90 cents to $ 69.80 per barrel after rising more than $ 1 to $ 69.95 a barrel.

"Oil prices have risen after Saudi Arabia has said it is comfortable with Brent oil above $ 80 a barrel," said Olivier Jakob of Petromatrix Consulting.

However, the market has been tempered by escalation within China. trade war that has clouded the outlook for crude oil demand from major global oil consumers.

China said on Tuesday that it had no choice but to respond to new US trade measures after US President Donald Trump imposed 10% tariff on about $ 200 billion. dollars of Chinese imports.

Customs duties are likely to limit economic activity in China and the United States, potentially affecting the growth of oil demand, as less fuel is consumed to transport goods for trade.

Countries are the two largest economies in the world.

"Oil markets are at war as Iranian sanctions will continue to provide short-term support, as talks around global demand following this morning's tariffs and speculation about a further increase in oil supply OPEC should temper the ambitions "Stephen Innes said.

He added that Venezuela's production deficit would also help support prices.

US sanctions affecting the Iranian oil sector will come into effect on November 4.

OPEC Secretary General Mohammad Barkindo said on Tuesday that OPEC and non-OPEC countries are reaching an agreement on long-term cooperation by December.

Before this meeting in Vienna, producers will meet in Algeria this month to discuss possible scenarios.

Russia, the world's largest oil producer, and other OPEC producers have entered into a supply agreement to maintain prices while supplying enough oil to the market.

"There remains a big question mark on crude oil purchases in China, which have dropped to a zero point, there is a risk that Chinese tariffs on US crude," said Jakob, who could weigh on the growth in US production.

Oil production from seven major American shale formations is expected to increase from 79,000 barrels per day to 7.6 million barrels per day in October, the US Energy Information Administration announced Monday.

In total, US production reached 10.7 million bpd in June.

On Monday, Russian Energy Minister Alexander Novak said that OPEC and non-OPEC members would discuss all possible supply scenarios when they meet this month. Algeria.