Oil rises as Saudi says it is comfortable with higher prices

Brent crude LCOc1 futures rose 98 cents, or 1.3 percent, to settle at $79.03 a barrel.

US West Texas Intermediate (WTI) crude was down 28 cents, or 0.4 percent, to $68.62 per barrel.

China said it had no choice but to retaliate against new USA trade measures after Trump imposed 10 percent tariffs on about $200 billion worth of Chinese imports.

The trade dispute is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from the upcoming USA sanctions on Iran.

Refineries in the United States consumed about 17.7 million barrels per day (bpd) of crude oil last week, while China's refiners used about 11.8 million bpd in August, according to government data from the countries.

China, one of the world's largest oil consumers, on Tuesday added $60 billion of US products to its import tariff list.

"Saudi Arabia and the UAE are turning OPEC into a tool for the USA and consequently the organization has not much credit left", Iran's OPEC governor Hossein Kazempour Ardebili told the Shana newswire, affiliated to Iran's Oil Ministry.

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The unanimous judgment decriminalises adults smoking dagga at home and growing enough marijuana for personal consumption. In the meantime‚ the court specified it has granted interim relief that allows personal use at home.

Top White House economic adviser Larry Kudlow said on Monday that he expected the United States would soon announce tariffs on an additional $200 billion worth of Chinese goods.

USA sanctions affecting Iran's petroleum sector will come into force from November 4.

"Oil markets are in a tug-of-war as Iran sanctions will continue to provide near-term support, while discussions around global demand in the wake of this morning's tariffs and speculation of further OPEC supply increases should temper upside ambitions", said Stephen Innes, head of trading at brokerage Oanda.

Technical analysis from Reuters market analyst Wang Tao showed that USA oil prices have repeatedly failed to overcome a resistance level of $69.85 per barrel, signalling a dissipation of positive outlook.

USA crude stocks increased by 1.2 million barrels according to the American Petroleum Institute (API), sharply reversing the market forecast of -2.7 million barrels, raising prospects for a widening premium in the Brent versus WTI with crude runs worsening in Europe and Asia.

"Iran is not only a founding member of OPEC, it's a very important member of this organization", OPEC Secretary-General Mohammed Sanusi Barkindo said. Russia, the world's largest oil producer, and other producers in OPEC have kept in place a supply agreement to maintain prices while at the same time providing enough oil to the market.

Russian Energy Minister Alexander Novak said an oil price between $70 and $80 was temporary and sanctions-driven, adding the long-term price would stand around $50 a barrel.

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