Oil could rise to $100 by year-end, merchants warn

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

UD light crude was $1.43, or 2 per cent, higher at $72.21.

A committee comprised of the OPEC cartel and non-OPEC producers said it was satisfied with the current market outlook, which represented "an overall healthy balance between supply and demand".

A meeting of OPEC and its allies ended without any decision to further increase oil output despite President Donald Trump's call for lower prices.

The panel comprised of ministers from OPEC and allied oil producers meeting on Sunday is unlikely to recommend a further increase in crude production from that agreed in June, five OPEC and non-OPEC sources told Reuters on Sunday.

Falih said Saudi Arabia has spare capacity to boost output but that this action was not necessary for now, and might not be needed next year because OPEC projects there will be a marked rise in oil production from non-OPEC countries which could outpace global demand.

In addition to US sanctions cutting Iranian supply, the world is also dealing with a decline in Venezuelan oil production due to an economic crisis in the Latin American nation, according to Trafigura's Luckock.

Strong bullish sentiment is boosted by fears on impact from looming United States sanctions against Iran as well as OPEC's unwillingness to increase production and support oil markets which may face the shortage in oil supply, once Iran is out.

The Middle East dominated Organization of the Petroleum Exporting Countries as well as top producer Russian Federation are discussing raising output to counter falling supply from Iran, although no decision has been made public yet.

Oman's oil minister Mohammed bin Hamad Al-Rumhy told reporters on Saturday that OPEC and non-OPEC producers overachieved on pledged output cuts by 600,000 bpd in August, putting the reduction at around 2.4 million bpd.

According to the WSJ, Saudi Arabia, the world's top oil exporter has increased production to around 10.4 million barrels of crude per-day over the past two months. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

"This is the seventh time over the last couple of months that we have challenged the highs", he said, referring to individual monthly contracts, rather than a continuation contract.

Iran's OPEC representative Hossein Kazempour Ardebili on Sunday said his country was continuing to meet its OPEC quota share.

The Saudis and their allies appear to be trying to walk a fine line between accommodating Trump and not putting so much oil into the market that prices crash - as they did in 2014, damaging their petroleum-dependent economies.

The speculation has kept global crude prices high.

Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as USA sanctions on Iran were creating new challenges for oil markets. "We will remember. The OPEC monopoly must get prices down now!" he wrote on Twitter.

The higher oil prices could cause problems for Trump in the lead up to the midterm congressional elections in November.

Oil prices have hit a four-year high after Opec ruled out a production increase and analysts predicted it would continue to rise towards $100 per barrel.