West Texas Intermediate (WTI) for October delivery price settled 1.8 percent higher with the support of high US crude oil exports information released by EIA. Gasoline inventories fell by more than 1.7M barrels last week.
Varga further expanded by saying that the current trade war between the USA and other countries should have impacted the price of oil.
Among the countries capable of increasing production beyond current levels, Saudi Arabia and Russian Federation hold about three quarters of the spare capacity, according to Bloomberg calculations using data from the International Energy Agency.
U.S. Energy Secretary Rick Perry had separate meetings with Saudi Arabian and Russian officials this month.
Brent has been trading just below $80/Bbl, near its highest price for nearly four years, on expectations US sanctions against Iran, Opec's third biggest producer, will reduce supply in world markets.
If Brent can break resistance at $79.68, it could climb towards $81.06 or even higher, he said, citing wave analysis on price charts.
According to the Weekly Petroleum Status Report by EIA, U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve (SPR), decreased 2.06 million barrels during the week ending September 14.
OPEC chief says Iran still 'very important' as US sanctions loom
Bloomberg reported that while Saudi Arabia had no desire to push prices higher than $80, it may no longer be possible to avoid it. The supply concerns outweighed an increase in oil inventories in the United States reported late on Tuesday.
According to the minister, oil at $80 a barrel is a "suitable" price.
Earlier in the session, prices jumped after a report said that OPEC and non-OPEC countries pumped less oil in August compared with July due to a drop in Iranian crude supply.
Brent crude for November delivery was down 3 cents at $78.67 a barrel by 7.37am. Specifically, helping to underpin prices is another drawdown in USA inventories and strong US gasoline demand. They also don't want oil prices to fall too much'.
Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016.
By beating Russian Federation and Saudi Arabia, the United States of America this year has become the topmost crude oil producer.
Weekly crude production inched back to 11 million bpd, the record high it has been hovering around this summer.
Opec and its allies are scheduled to gather in Algeria on Sunday to discuss how to allocate higher supply to offset the shortage of Iranian supplies.