Investing.com - WTI crude oil prices settled higher Tuesday on expectations for tighter global output as Saudi Arabia said it was comfortable with higher oil prices, while major oil producers reportedly will not float any new plans to raise output at a key meeting next week.
On the New York Mercantile Exchange, crude futures for November delivery rose 1.4% to settle at $69.85 a barrel, while on London's Intercontinental Exchange, Brent rose 1.22% to trade at $79.00 a barrel.
OPEC and non-OPEC producers will meet in Algiers on Sunday, but do not have plans to propose an immediate increase in crude output, but rather will discuss how to share a previously agreed output increase, according a report from Reuters.
Members of the oil-production cut agreement agreed in June to life output curbs to avert the prospect of global supply shortage amid expectations for a steep loss of Iranian crude from market as U.S. sanctions on the Islamic Republic loom.
U.S. sanctions are slated to hit Iran's petroleum sector from Nov. 4. Iranian crude customers have already shown they are unlikely to rail against the sanctions, which seeks to cut Iranian crude exports.
South Korean imports of Iranian oil fell in August to just 55,161 barrels a day, down 72% from July levels, according to a report from Platts on Monday.
Also helping expectations for tighter global crude supplies was a report from Bloomberg, citing unnamed Saudi sources, claiming the Kingdom was comfortable with Brent crude prices above $80 barrel, easing fears that Saudi Arabia, the de-facto leader of OPEC, would push for an increase in output.
Heading into settlement, investor focus shifted to fresh U.S. crude supply data expected to show a drawdown in stockpiles for the fifth week in a row.
U.S. petroleum inventory data from the American Petroleum Institute, an industry group, is due later in the session at 4:30 p.m., while official data from EIA is set to be released Wednesday at 10:30 a.m.
The EIA is expected to report U.S. crude stockpiles fell just 2.741 million barrels last week, down from the 5.836 million barrel decline in the prior week.