Oil prices rose further above $30 a barrel on Tuesday amid hopes that the Organization of Petroleum Exporting Countries, OPEC, and non-OPEC producers may reach a deal to tackle one of the biggest supply gluts in decades.
The news comes on the heels of reports that OPEC is making renewed calls for rival producers to cut supply alongside its members.
Russia, seen as key to any deal, has so far refused to cooperate.
However, Iraq’s oil minister on Tuesday said he saw some flexibility for a deal between OPEC and non-OPEC.
“Without a production agreement, fundamentals point to lower numbers”, said David Hufton of oil brokers PVM. “With one, oil becomes a 40-to-60 dollars-a-barrel market”.