Oil climbed after Iraq’s oil minister said at a conference in Kuwait that Saudi Arabia and Russia are now more flexible about cooperating to cut output.

Futures rose 3.7 percent in New York. Saudi Arabia and Russia, the world’s biggest oil producers, have become more flexible about collaborating to trim output as crude prices have fallen to unforeseen levels, Iraqi Oil Minister Adel Abdul Mahdi said Tuesday. Russia could work with OPEC to remove supply, OAO Lukoil Vice President Leonid Fedun told state news agency Tass.

Oil is down 15 percent this year as volatility in global markets adds to concern over ample U.S. stockpiles, unfettered Saudi and Russian output and an expected revival in Iranian shipments after the end of sanctions. U.S. crude supplies probably rose by 4 million barrels last week, a Bloomberg survey showed before an Energy Information Administration report.

West Texas Intermediate oil for March delivery rose $1.11 to close at $31.45 a barrel on the New York Mercantile Exchange. The contract retreated 5.8 percent on Monday after the biggest two-day rally in more than seven years. Total volume traded was 30 percent above the 100-day average at 2:50 p.m.

Brent for March settlement advanced $1.30, or 4.3 percent, to $31.80 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude closed at a 35-cent premium to WTI.

Source: Bloomberg