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Oil rises back above $30 on hopes for deal to cut supply glut

Published 2016-01-26, 08:24 a/m
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Investing.com - Oil rose further above $30 a barrel on Tuesday, lifted by hopes that OPEC and non-OPEC producers may be edging closer to a deal to tackle one of the biggest supply gluts in decades.

The Organization of the Petroleum Exporting Countries is making renewed calls for rival producers to cut supply alongside its members, but 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 rose 1.13% to $31.67 a barrel by 11.48 GMT, rebounding from an earlier decline. It reached $27.10, its lowest since November 2003, on January 20.

U.S. crude was up 0.84% at $30.61.

Demand concerns checked gains and analysts expect the latest weekly reports on U.S. supplies to show crude inventories, already close to a record high, rose further.

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