Oil prices increase as Iraq, Iran willing to cut output

Oil prices increased substantially on Monday as Iraq and Iran both expressed willingness to cut crude oil output.

Oil prices slumped initially by as much as two percent, but spiked later after media reported Iraq's oil minister said the country would cooperate with the Organization of Petroleum Exporting Countries (OPEC) to reach an agreement acceptable to all.

Meanwhile, Russia President Vladimir Putin and his Iranian counterpart acknowledged the importance of finalizing an OPEC output cut deal in order to stabilize the global oil market, sources said.

Analysts said a change of attitude from Iraq and Iran lifted Monday's oil prices, as both countries have expressed certain reservations about the deal earlier.

The West Texas Intermediate for January Delivery added 1.02 U.S. dollars to settle at 47.08 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery increased 1 dollars to close at 48.24 dollars a barrel on the London ICE Futures Exchange. Enditem