West Texas Intermediate futures for March delivery surged to $33.57 ( 9.49%), while Brent crude rose to $35.11 ( 1.77%) after Iran welcomed plans by Russia and Saudi Arabia to freeze production levels. However Tehran did not indicate how it will act.
Analysts are still skeptical about the recent deal. Simply freezing production does not presume output cuts and will not be enough to support prices. Current market conditions need more concrete actions. Besides, all major oil producers would have to act and this would be difficult to achieve.