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Oil Prices Rise On Supply Worries

Oil prices steadied on Friday after falling the most in a month the previous day on demand concerns as the International Energy Agency (IEA) warned of mounting economic risks.

Benchmark Brent crude was up 16 cents or 0.2 percent at $78.34 a barrel after falling 2 percent on Thursday.

U.S. light crude futures were up 27 cents or 0.39 percent at 68.86 after tumbling 2.5 percent in the previous session.

While there are risks to prices from an escalation of trade disputes, fund managers are betting that supplies will fall sharply once the U.S. sanctions take effect in November.

The IEA said in a monthly report that oil prices could break out above $80 a barrel unless other producers act to offset deepening supply losses in Iran and Venezuela.

It's uncertain whether Saudi Arabia and other producers will fill any shortfall, or how far they're able to do so, the agency said.

The monitoring committee set up by OPEC and non-OPEC producers is scheduled to meet in Algiers on September 23 to discuss a new production strategy.

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