Oil futures spike on reports Iran warming to idea of output freeze

Reports that Iran might now be more willing to join international efforts to prop up the price of crude oil sent crude futures into reverse, resulting in a spike in prices in afternoon trading.

According to sources from inside the Organisation for Petroleum Exporting Countries and the oil industry, Tehran had been sending "positive signals" that it might support a joint decision by the world's largest producers to freeze oil production at current levels, Reuters reported.

Nonetheless, a decision to join renewed efforts to limit global oil output had yet to be adopted.

"Iran is reaching its pre-sanctions production level soon and after that it can cooperate with the others," a source familiar with Iranian thinking told the newswire.

As of 16:52 BST front month Brent crude oil futures were near their best levels of the day, gaining 1.463% to $49.89 per barrel on the ICE.