Crude prices jumped today as renewed chatter about a possible production cut deal swirled around oil markets.
Brent crude, the global benchmark, jumped four per cent to $31.26 per barrel. Meanwhile, West Texas Intermediate, the US benchmarked, added 3.8 per cent to $27.19.
It came after the United Arab Emirates energy minister Suhail bin Mohammed al-Mazrouei said the Organisation of Petroleum Exporting Countries (Opec) was open to talks with other exporters about cutting crude production
Oil prices have shed around 70 per cent over the last 18 months, as falling demand has been compounded by Opec's refusal to cut production. Iran's return to the oil market this year, as well as the unanticipated resilience of US shale gas, has further exacerbated this.
Nevertheless, his comments were enough to convince analysts that Opec and non-Opec productions would be able to agree on a common policy, meaning the oil price rout isn't likely to abate anytime soon.
"Comments from the UAE energy minister that Opec was willing to cooperate on production cuts had little impact. We view this as further jawboning, with the likelihood of a coordinated response on supply cuts very low," ANZ bank said.