Global Oil price soared higher above 30 dollars a barrel on Tuesday on hopes that OPEC and non-OPEC producers may reach deal to tackle one of the biggest supply gluts in decades.
The Organisation of the Petroleum Exporting Countries 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. Iraq’s oil minister said on Tuesday he saw some flexibility for a deal between OPEC and non-OPEC.
Brent crude leaped 17 cents to 30.67 dollars a barrel. U.S. crude was up seven cents at 30.41 dollars.
“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.” (Reuters/NAN)