Oil mingling as talks on China's tariffs announced early

NEW YORK (Reuters) – Oil prices fell on Friday because of rising US tariffs on Chinese imports after a recovery triggered by concerns that more sanctions against Iran could limit supply.

Crude futures ended the week up more than 1.6%.

Negotiators said Friday's rally was triggered by reports that US Secretary of State Michael Pompeo will announce new sanctions against Iran.

"This increases the chances that there will be less oil coming out of there," said Phil Flynn, an analyst at Price Futures Group.

Profits were held back by reports from US President Donald Trump, who asked his associates to charge about $ 200 billion worth of Chinese products.

Brent crude oil futures retreated to additional rate reporting, dropping 9 cents per barrel to $ 78.09. The global benchmark fell 2.0% Thursday after hitting Wednesday its highest level since May 22, at $ 80.13.

Futures on West Texas Intermediate (WTI) in the US rose 40 cents to $ 68.99 a barrel after falling 2.5% on Thursday.

After an unstable week, Brent announced a weekly rise of 1.6% and a WTI of 1.8%.

Brent hit a high of $ 78.94 a barrel, while speculators were trying to push the price above the $ 79.00 level.

Brent futures reached a high of around $ 80.00 a barrel three times this year before falling back.

"The yesterday's price action confirms $ 80.00 a barrel as a strong line of resistance in Brent," said consulting firm Petromatrix in a research note.

"There has been a lot of speculative interest in looking for Brent above $ 80 a barrel on US sanctions on Iranian oil buyers, but so far, any Brent purchase over $ 79 does did not last long. "

US energy companies have added oil rigs this week for a second week in a row, as crude prices are trading at their highest level since summer 2015, as major oil producing countries have signed a global deal to boost oil prices. limit the offer.

Drillers added two oil platforms in the week leading up to December 1, bringing the total to 749, the highest level since September, said Friday the energy services firm Baker Hughes of General Electric Co.

The United States renews its sanctions against Iran after having withdrawn from a nuclear agreement concluded in 2015 between Tehran and the world powers.

Washington has re-imposed some of the financial sanctions from August 6, while those affecting the Iranian oil sector will come into effect on Nov. 4.

Indian refiners, who are traditionally the main buyers of Iranian crude, will reduce their monthly charges for Iran by September and October by almost half from the beginning of the year.

But Iran's OPEC governor, Hossein Kazempour Ardebili, said in a comment to Reuters that a "shortage of supply" meant that the US would not be able to meet its zero export target.

(Chart: growth in US oil production stagnates – reut.rs/2CPGl2p)