(Ecofin Agency) - The prices of crude oil on Wednesday near $31 per barrel after four days of deteriorations, buoyed by the possibility of a partnership between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to confront the oversupply situation in the market.

Iran's oil minister, Bijan Zangeneh (photo) today revealed that his country is prepared to discuss with Saudi Arabia and other OPEC members to cut output by 1 million bpd. He however did not say if Russia will cut.

While traders and representatives from OPEC are doubting if any cooperation between the group and non-OPEC producers will happen, the possibility is reassuring for the market.

“If prices drop further, the chance for joint action increases and this in turn should prevent a further sharp drop in prices. Today's gain is just a bounce back after yesterday's sharp sell-off,”  Carsten Fritsch of Commerzbank said.

Oil dropped from more than $100 in June 2014 to $27.10 in January, due to oversupply and a change of policy by OPEC to concentrate on market share rather than support prices.

This decline has so far squeezed oil revenue. BP’s CEO said the commotion in the financial markets, is to some extent caused by the low oil price.

“Of course the turmoil is a big concern. I've been travelling recently to major consuming countries like Japan and even they say they would like higher oil prices,” BP’s Chief Executive Bob Dudley said.

According to Reuters, the American Petroleum Institute (API), has said that crude stocks increased by 2.4 million barrels last week, compared to the 3.6-million-barrel increase predicted by analysts.

Anita Fatunji