Oil prices rise on Wednesday as efforts led by Russia and Saudi Arabia
to mediate an agreement to freeze production levels and alleviate a
global oversupply focused on Iran, which said it will maintain its tough
stance.
Iranian Oil Minister Bijan Zanganeh, met with their counterparts from Venezuela, Iraq and Qatar in Tehran. Earlier, an Iranian official said the country will continue raising its production until it reaches before the imposition of international sanctions against levels.
A freeze on production since January near record levels would do little to ease the oversupply, analysts said.
At 1105 GMT, Brent crude rose 92 cents to $ 33.10 a barrel, after losing $ 1.21 in the previous wheel.
The US oil gained 68 cents to $ 29.72 a barrel.
Under a proposal that could lead to the first global agreement on crude production in 15 years, large producers freeze their level of extraction in January levels. But Saudi Arabia said Tuesday that the deal will depend on the cooperation of other major producers.
Iran, the fourth largest producer in the Organization of Petroleum Exporting Countries (OPEC), could enjoy an exception, as it seeks to boost production after removal of international sanctions against its nuclear program last month, said one analyst.
Investors are also watching oil inventory data in the US that will be released on Wednesday and Thursday for clues on pricing.Reuters