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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.