Oil

Oil prices have increased towards $35 a barrel and added a 7% rise in the previous session after Iran expressed support for production freezing plans proposed by Russia and Saudi Arabia at January levels.

Brent edged up 38 cents to $34.88 a barrel, while the US crude gained 69 cents to $31.35, Reuters reported.

After meeting counterparts from Venezuela, Iraq and Qatar in Tehran, Iranian Oil Minister Bijan Zanganeh said that the proposal should be the first step to stabilise the market, but was not clear if the country would freeze its output.

"Iranian Oil Minister Bijan Zanganeh said that the proposal should be the first step to stabilise the market."

The global oversupply led to a collapse in oil prices from levels above $100 a barrel witnessed in mid-2014.

Iran started selling oil to the EU after international nuclear sanctions were lifted last month.

Oil prices also gained support following data released by the American Petroleum Institute that highlighted a decline in US crude inventories by 3.3 million barrels last week.

Investors are watching for the official weekly supply report from the US Government’s Energy Information Administration for confirmation of the move.


Image: The US crude gained 69 cents to $31.35. Photo: courtesy of Victor Habbick/ FreeDigitalPhotos.net.