Oil rises amid Iran speculation

The U.S. benchmark, West Texas Intermediate (WTI) crude for October delivery, gained 0.69 U.S. dollar to settle at 48.10 U.S. dollars a barrel on the New York Mercantile Exchange.

Meanwhile, Brent crude for October delivery, the European benchmark, rose 0.8 U.S. dollar to close at 49.96 U.S. dollars a barrel on the London ICE Futures Exchange.

Oil prices advanced after a fresh report suggested that Iran, the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC), could support efforts by OPEC and Russia to cap output and lift prices.

Reuters reported, citing unnamed sources, that Tehran has sent "positive signals" that it could back the move, having earlier this year refused to restrain its own output in order to support the market.

Both U.S. and Brent crude futures closed 1.5 percent higher on Tuesday following the news.

The news reversed earlier losses in oil prices, which had been driven by expectations of rising output from Nigeria and Iraq, adding to the global glut.

On Monday, WTI and Brent contracts both fell around three percent, largely as a result of Iraq signaling a possible increase in its crude production.

Oil prices gained around 15 percent last week, on speculation that Saudi Arabia and other OPEC members will next month agree a production-limiting deal with non-members led by Russia.

After more than a year during which the OPEC cartel has been unable or unwilling to reduce its own production to support prices, Gene McGillian of Tradition Energy remained cautious about reports that Iran will reverse its stance and cooperate with the group when it meets next month.

Editor: Nurudin Saleh