Benchmark Brent oil climbed above $100 U.S. a barrel on Wednesday after Saudi Arabia suggested this week that the Organization of the Petroleum Exporting Countries could consider cutting output in response to poor liquidity in the crude futures market and fears about a global economic downturn.
Brent for October settlement reached a three-week high and was last up 92 cents at $101.14 per barrel. U.S. crude added 79 cents to trade at $94.53 a barrel.
Contracts for both crudes soared on Tuesday after Energy Minister Prince Abdulaziz bin Salman raised the possibility of cutting production amid poor futures market liquidity and macro-economic fears.
Sources later told Reuters any cuts by OPEC and its allies, known as OPEC+, were likely to coincide with a return of Iranian the market should Tehran secure a nuclear deal with world powers.
A U.S. official said on Monday that Iran had dropped some of its main demands on resurrecting a deal.
OPEC+ is already producing 2.9 million barrels per day less than its target, sources said, complicating any decision on cuts or how to calculate the baseline for an output reduction.
