U.S. Energy Secretary Rick Perry said in an interview with Reuters on Friday that he does not foresee any price spikes and that the countries, the world's top three oil producers, can between them raise global output in the next 18 months.
WTI crude for October delivery, which expires Thursday, was at $70.06 on the New York Mercantile Exchange, up 21 cents. Problems with supply are already being felt with most nations complying ahead of time with US demands to end all exports of oil from Iran.
Mohammed Sanusi Barkindo also said an agreement between OPEC and non-members that cut production and helped bring prices back up from lows of $30 a barrel in January 2016 was now "a permanent feature".
On Tuesday, China said it had no choice but to retaliate against new US trade measures after US President Donald Trump imposed 10 per cent tariffs on about $200 billion worth of Chinese imports.
Brent crude futures had dropped 22 cents, or 0.28%, to US$78.81 (RM326) per barrel by 0042 GMT, chipping away at Tuesday's 1.26% gain. "The impact on economic growth is slowly dripping in, which again hurts oil prices", said Wang Xiao, head of crude research at Guotai Junan Futures.
The trade dispute is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from the upcoming US sanctions on Iran over its nuclear program.
Southampton short on strikers for Liverpool match
Manchester City will attempt to land Europe's top prize when they start the Champions League campaign against Lyon. Daniel Sturridge was far more effective in that regard, losing possession just seven times. "Unbelievable (game).
Samsung Galaxy A7 (2018) announced - triple camera and Super AMOLED display
Earlier this year, Samsung's head of mobile DJ Koh promised to bring innovative features to its mid-range devices. True to what we have heard before, the new phone does come with not one, not two but three cameras on its back.
4 killed, 3.11 million evacuated as Typhoon Mangkhut lashes China
Despite avoiding a direct hit, winds there reached more than 110mph and as water levels surged by nearly 3.5m (12ft) in places. The typhoon was packing sustained winds of 205 kilometer per hour and gusts of up to 255 kph when it smacked the province.
He did not specify how crude producers would compensate for declining exports from Iran, with new United States sanctions due to hit the Islamic republic´s oil industry on November 4.
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, the most among the world's countries.
Bloomberg reported on Tuesday, citing unnamed Saudi sources, that the kingdom was now comfortable with prices above US$80 per barrel, at least for the short term.
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 inventories rose by 1.2 million barrels to 397.1 million in the week to September 14, according to the American Petroleum Institute (API).
Russian Energy Minister Alexander Novak said an oil price between $70 and $80 was temporary and sanctions-driven, adding that the long-term price would stand around $50/Bbl.