Brent crude falls to $82 per barrel

Saudi energy minister rips Trump tweet: 'I do not influence oil prices'

Brent crude LCOc1 settled up $2.40 or 3.1 percent at $81.20 a barrel, after touching an intraday high of $81.39, the highest since November, 2014.

Trump withdrew the United States from the 2015 nuclear deal between Iran and world powers in May, and last month started reimposing sanctions on the Iranian economy that were lifted under the deal in exchange for curbs on Tehran's nuclear program.

Brent crude futures were down 4 cents at $81.83 a barrel by 0342 GMT, after gaining almost 1 per cent the previous session.

They have reportedly been discussing raising output by half a million barrels a day to counter falling supply from Iran.

Alexander Novak, energy minister for the former Soviet Union, said his country is ready to hike its oil output after the implementation of USA sanctions on Iran: "I don't think we can discuss the exact number at this point but what I can tell you for sure is that we have significant potential to increase our production".

So far, the president has been careful to blame "OPEC" and unspecified countries in the "Middle East" for rising oil prices, eschewing identifying individual countries by name.

With the US sanctions on Iran taking full effect in early November, the $100-oil scenario could be becoming more realistic.

More news: U.S., China hike tariffs as trade war intensifies

U.S. West Texas Intermediate (WTI) crude futures rose to 71.52 dollars a barrel.

But just seven days earlier, the president's own energy secretary had told reporters that Saudi Arabia, OPEC and Russian Federation "are to be admired and appreciated" for raising their production to avoid a spike in oil prices.

OPEC and major Middle Eastern producers should take the responsibility to increase production when the market needs more crude, said Ali Nazar Faeq al-Shatari, deputy director of Iraq's State Oil Marketing Organization, or SOMO.

OPEC's reticence, combined with signs of accelerating supply losses from Iran, created a bullish mood the annual gathering of the Asian oil industry, traders, refiners and bankers in Singapore on Monday. "Since June, Saudi Arabia has met the demand for every barrel that has been requested", its oil minister, Khalid al-Falih, said.

For the time being, the president may be content to complain on Twitter but do little else, in order to avoid being blamed for the rise in oil prices that is a byproduct of his sanctions policy. But the American Petroleum Institute points out that during that time, exports fell 1.3 million barrels per day.

“While Citi is pricing in Brent (ICE) crude at around $80 for the quarter ahead, balances are precarious and the lack of spare capacity could see crude pricing well above $90 or even $100 should all of the potential risk in the market materialize, ” analysts including Ed Morse said in the note.

Iran's representative to Opec, Hossein Kazempour Ardebili, the head of the iranian delegation in Algiers, has indicated that his country continues to honor its "share of production" and said to expect the client countries of Iran "exercise their sovereignty and do not submit to the instructions of (Donald) Trump".

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