Crude oil spikes on fresh reports that Iran wants to play nice with OPEC

Crude oil is spiking Tuesday morning on fresh rumours of coordinated action from OPEC.

According to Reuters, Iran has sent signals that it might support joint action on oil production in order to boost prices.

The spike in prices shows that this move seen by the market as potentially curbing output and re-balancing the oversupply that has pressed crude prices down about 70% from two years ago.

Following this report on Tuesday, oil prices were up more than 1% for the day after having traded lower through the morning in New York.

Of course, this “OPEC rumour pushes oil prices higher” story is a well-worn genre at this point.

Since the beginning of the oil crash, the 13-member oil cartel has been loathe to change its policy stance even in the face of lower prices as its members seek to protect market share over working for higher prices.

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