Oil prices recover ahead of Iran-Iraq talks

SINGAPORE( AFP) – Crude prices recovered in Asia Wednesday ahead of a meeting between the Iranian and Iraqi oil ministers following a Saudi Arabia- Russia agreement to freeze output.

At around 0600 GMT, US benchmark West Texas Intermediate for March delivery was 10 cents, or 0.34 percent, higher at $29.14 a barrel.

Its European counterpart Brent crude for April was 20 cents, or 0.62 percent, higher at $32.38.

Oil prices have tumbled about 70 percent since June 2014, hit by oversupply, sluggish demand and concerns over the global economic outlook.

Prices have come under renewed pressure from Iran's return to world markets after the lifting last month of inter- national sanctions linked to its nuclear program.

The commodity had enjoyed a surge from Friday to early Tuesday as Moscow and Riyadh – the world's two biggest producers – prepared for talks on a rout that has seen the cost of a barrel collapse and hammered global markets.

But the conditional agreement between Saudi Arabia – the de facto leader of OPEC – Russia, Venezuela, and Qatar to freeze output at record January levels, rather than make cuts, left a bad taste in the mouths of traders, sending both main contracts into reverse.

The meeting in Tehran between historic rivals Iran and Iraq – as well as Venezuela – provided some support for the beleaguered commodity Wednesday.