Front-month Brent crude oil futures were at $77.05 a barrel at 4.28am GMT, down 29c or 0.4 percent, from their last close.
Oil prices dipped on Tuesday, dragged down by concerns that the Sino-U.S. trade dispute will dent economic growth and by signs of rising global supply despite upcoming sanctions against Iran.
"Saudi Arabia's production has reached 10.7 million barrels per day this month and we could increase production to 12 million barrels per day".
United States drillers added two oil rigs in the week to October 26, bringing the total count to 875, the highest level since March 2015, Baker Hughes energy services firm said on Friday.
Iran says the U.S. can never prevent it from selling crude oil to worldwide clients, stressing that no other supplier can substitute the kind of oil it provides to overseas markets.
Consultancy JBC Energy said the oil price weakness was "probably driven by the wider negative market sentiment amid speculation about additional USA tariffs on Chinese imports, should upcoming talks fail to produce the desired results". One is led by National Security Adviser John Bolton, who wants the toughest possible approach, and another by State Department officials keen to balance sanctions against preventing an oil price spike that could damage the U.S. and its allies. "The second one is global economic growth momentum slowing down", IEA chief Fatih Birol told an energy conference in Singapore.
The OPEC+ producer group, led by Saudi Arabia and non-OPEC member Russian Federation, agreed in June to lift oil supplies, but Opec said last week it may have to reimpose output cuts as global inventories rise.More news: Pence Knocks Abrams Over Celebrity Support: 'This Ain't Hollywood, This Is Georgia'
That's an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand. The second phase of United States bans will come into effect on November 4 targeting Iran's oil exports and Central Bank.
Investors awaited industry data on US crude inventories due to be released at 4:30 p.m. EDT on Tuesday.
Last week, declines were partially attributed to investor concerns about oil production increases following Saudi Arabia's announced ramp-up of output to help cover supply disruptions expected after USA sanctions against Iran go into effect by November 5.
Jahangiri also emphasized that Iran had devised mechanisms to counter the impacts of U.S. sanctions.
Fund managers have cut their bullish positions in crude futures and options for four weeks in a row to their lowest since July 2017, as the demand outlook grows more uncertain.
Iran first began to enter into transactions for the sale of oil on the Tehran oil Bourse, which is part of a strategy to counter the USA sanctions that will enter into force on 4 November.
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