Oil rose on Tuesday above $31 a barrel on hopes Opec and non-Opec producers are inching closer to a deal to cut output. Opec is making renewed calls for rival producers to cut supply alongside its members, but Russia, seen as key to any deal, has refused to co-operate.
Iraqi oil minister Adel Abdel Mahdi said yesterday he saw “some flexibility” for a deal.
Brent crude was up $1.02 at $31.52 a barrel by yesterday evening, rebounding from a decline earlier in the session. On January 20th, Brent reached $27.10, its lowest since November 2003.
US crude was up 91 cents, or 3 per cent, at $31.25 a barrel.
Tuesday's rally was limited, with oil prices pressured by weakness in Asian stock markets. China, the number two oil consumer, posted an 11.9 per cent drop in rail freight volume in 2015. – (Reuters)
