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Oil prices rallied on Tuesday after Saudi Arabia said it was comfortable with Brent oil above $80 a barrel.
Ahead of a meeting between major producing countries in Algeria, the Bloomberg reported citing people familiar with the kingdom's view that the country is comfortable with higher oil prices, at least in the short term.
Benchmark Brent crude was up 1.56 percent at $79.27 per barrel while U.S. West Texas Intermediate (WTI) crude futures were up 1.49 percent at $68.70.
Investors also took in their stride the U.S. announcement of a 10 percent tariff on about $200 billion in imports from China, staring next week.
The tariffs will be set at 10 percent until the year-end, but would increase to 25 percent from January 1.
U.S. President Donald Trump also warned that he would pursue tariffs on approximately USD 267 billion of additional imports if China takes retaliatory action.
China said that the United States has not been "sincere" and it has no choice but to retaliate. The statement, however, gave no timeline or details of the proposed action.
