Oil goes up on signs The OPEC is not ready to stimulate production

The oil group confirmed Tuesday that OPEC would not be ready to increase production to cope with the contraction of supplies from Iran and that Saudi Arabia said it was in no hurry to lower the prices.

Brent futures were up $ 1.14 a barrel to $ 79.19 a barrel, after peaking at $ 79.37.

US West Texas Intermediate crude (WTI) rose 95 cents to $ 69.86 a barrel, after rising $ 1 to $ 69.95.

OPEC ministers and non-OPEC producers meet on Sunday to discuss compliance with production policies. OPEC sources told Reuters that no immediate action was planned and that producers would discuss how to share the previously agreed production increase.

Bloomberg reported Tuesday, citing unnamed Saudi sources, that the kingdom was currently comfortable with prices above $ 80 a barrel, at least in the short term.

The news agency reported that although the kingdom did not want to push prices to more than $ 80 per barrel, it might not be possible to avoid it because of the tightening of supplies among oil companies. US sanctions against Iran.

Sources from OPEC and from industry have already told Reuters that the kingdom wanted to keep the price at $ 80 per barrel until the US elections to avoid additional pressure from US President Donald Trump.

"It is doubtful that Saudi Arabia will increase production to compensate for the loss of Iranian crude once the sanctions come into effect," said Carsten Fritsch, an analyst at Commerzbank in Frankfurt.

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

Russian Minister of Energy Alexander Novak said an oil price between 70 and 80 dollars was temporary and imposed by sanctions, adding that the long-term price would be about 50 dollars.

US Secretary of Energy Rick Perry said last week in Moscow that he had not expected any price increases once sanctions came into effect and he was in favor of Saudi production.

CAPS GAINS OF COMMERCIAL WAR

However, the longer-term outlook remains tainted by escalating China-US relations. trade war that has clouded the outlook for crude oil demand from major global oil consumers.

China said it had no choice but to retaliate for new US trade measures after Trump imposed 10% tariffs on about $ 200 billion worth of oil. 39, 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.

"The oil markets are at war as Iranian sanctions will continue to provide short-term support, while discussions on global demand following this morning's tariffs and speculation on an increase in the supply of oil will continue. OPEC should temper the ambitions "Innes, head of trading at Oanda.