Saudi Arabia and Russian Federation, the world’s top two crude-oil producers, pledged on Monday to cooperate to stabilize global markets, while failing to announce any specific measures to bolster prices.
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Efforts by OPEC and non-OPEC oil exporters to reach an agreement on freezing output earlier this year foundered because Iran declined to participate.
Iran plans to increase its own oil output to pre-sanctions levels in the next few months.
The National Iranian Oil Company’s (NIOC) director for worldwide affairs told CNBC Wednesday Iran’s oil output had reached 3.8 million barrels per day (MMBPD) and it would increase production.
Iran has said it supports measures that would stabilize the market, but has never indicated that it would join the production-freeze party.
Global oil prices have slipped to 47 USA dollars per barrel on receding hopes for imminent action to tackle a supply glut.
Iran insists it will be ready to decide on capping production once output recovers to what it was before global sanctions on the country were tightened in 2012.
Oil prices rose on Wednesday thanks to a weaker dollar but skepticism that key producers would agree to limit output at an upcoming meeting kept gains in check, traders said.
Iran, however, signaled on Tuesday it was prepared to work with Saudi Arabia and Russian Federation to prop up oil prices as it began to bargain with OPEC on possible exemptions from output limits.
Iranian officials have said Tehran would take part in talks on a possible production freeze after it reaches a 4 million barrel per day output, which it expects to reach in April 2017.
Iraq has given other OPEC members a level at which it can cap its output, according to the head of the state oil company. November Brent crude futures rose 49 cents to $47.75 a barrel by 0900 GMT, while US crude futures added 46 cents at $45.29 a barrel.
Its total production has risen from 2.7 million bpd to 3.85 million bpd, close to the level before global sanctions were imposed in 2012.
In this December 19, 2014 photo, oil pump jacks work in unison on a foggy morning in Williston, North Dakota.
An informal meeting between OPEC and other producing nations is set for the last week of September in Algeria.
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Instability and stumbling oil prices will be detrimental to oil exporting countries, he stressed, saying that the two factors will be also inconsistent with major global objective of environment conservation.
