It was trading little changed from late Monday, up 64 cents at $45.08 a barrel.
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OPEC members will meet between September 26-28 during the International Energy Forum (IEF) in Algeria.
Both countries’ energy ministers are set to meet later this month at a meeting of the International Energy Forum in Algeria, and again at a meeting of the oil cartel OPEC in November, where they said they would further discuss their cooperation.
The deal came as G20 leaders agreed to co-ordinate policies to bolster the global economy and oppose protectionism – although there were few concrete proposals.
Brent crude futures jumped nearly 5 percent late on Monday afternoon before a news conference at which the two countries announced their agreement, but by Tuesday morning they have given up most of those gains, standing at $47.71 a barrel.
Iran, OPEC’s third largest producer, has said it would only cooperate in talks to freeze output if fellow exporters recognized its right to fully regain market share.
The Organization of the Petroleum Exporting Countries (OPEC), the 14-nation cartel which produces about one third of the world’s oil, will meet informally with Russian Federation later this month in Algeria to discuss a possible output freeze in order to boost prices.
Oil prices in overnight trading rallied further, but erased the gains by the start of trading in NY.
The Organization of the Petroleum Exporting Countries and non-OPEC producers such as Russian Federation will hold informal talks in Algeria on September 26-28, but many in the market are sceptical a deal will happen.
The globe’s major oil producers have been unable to strike an accord on freezing output, owing mainly to a dispute between Saudi Arabia and Iran over Tehran’s desire to raise production levels after the lifting of sanctions.
“But the two countries agree that even if there is no consensus, we will be willing to take joint action when necessary”, he added. Meanwhile, an Iranian official reiterated the country still plans to reach its output targets regardless of the Russia-Saudi agreement.
Traders on Tuesday had an eye out for headlines from a meeting between OPEC Secretary-General Mohammed Barkendo and Iran’s oil minister.
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Oil has been dogged by a stubborn supply glut since late 2014, which saw prices dip to near 13-year lows below United States dollars 30 earlier this year.
