Iran have hinted that they are unlikely to participate in an oil agreement with Russia and Saudi Arabia designed to curb output and push down prices, calling the idea “illogical”.

Iran’s OPEC envoy Mehdi Asali told the Iranian newspaper Shargh on Tuesday that Iran will continue to increase oil production until it reaches pre-sanction levels. Iran have just restarted exports after sanctions years of sanctions.

“Asking Iran to freeze its oil production level is illogical … when Iran was under sanctions, some countries raised their output and they caused the drop in oil prices.

“How can they expect Iran to cooperate now and pay the price?”

Oil supply continues to outstrip demand, pushing prices down to lows that have the capability of damaging economies globally – something that is likely to be worsened by the addition of Iranian oil in the market. Venezuela’s oil minister has held talks over the past week in order to broker an agreement between oil-producing countries, and is due to meet with Iran and Iraq in Tehran on Wednesday.

The markets have reacted well to hope of an agreement, with the price of benchmark Brent crude LCOc1 rising to $35.55 a barrel on Tuesday. However, the price has since wavered as investors show doubt on the likelihood of an agreement.

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