Global prices of oil surged Wednesday after Iran’s oil minister, Bijan Zanganeh, called the pact struck among Saudi Arabia, Qatar, Venezuela and Russia to limit oil production a “first step” toward stabilizing the market.
The Wall Street Journal reported that Zanganeh was quoted as saying Iran would support any action to help oil prices recover. “But Iran didn’t commit to requests from fellow OPEC members to limit its production to help raise crude prices, dealing a blow to hopes of coordinated action among the world’s big petroleum producers.”
“This is a first step and more steps must follow,” Zanganeh said. “But this beginning of cooperation between OPEC and non-OPEC member states for the recovery of market is a cause of happiness and we also support any action for the stability of market and recovery of prices.”
WTI for March delivery gained $1.96, or 6.8%, to $31.00 a barrel on NYMEX. Brent gained or 7.6%, to $34.62 a barrel on ICE Futures Europe.