Oil Prices Boosted Amid Report That Iran Is Open To Cap Its Output

The price of a barrel of oil rose more than 1 percent on Tuesday after Reuters reported that Iran is open to an agreement with OPEC to cap its oil output to help boost the price of the commodity higher.

OPEC nations will meet in September after a meeting earlier this year failed to lead to a consensus on a production cap. Saudi Arabia was open to a production cap under the condition that Iran would agree to one as well. However, Tehran made it clear its near-term goal is to boost production as quickly as possible to its pre-embargo levels to make up for lost sales over the years because of an economic embargo.

Since the failed meeting, Saudi Arabia boosted its oil output to a historical high of 10.8 million to 10.9 million barrels per day.

Related Link: Report: Saudi Arabia Could Boost Its Oil Output Even Higher

Reuters is now reporting that Tehran is "more willing to reach an understanding on the matter," according to sources in OPEC and the oil industry.

Finally, Reuters cited a "source familiar with Iranian thinking," in suggesting that Iran is actually "reaching its pre-sanctions production level" and will very soon be in a position to better "cooperate" with the other OPEC members.