LONDON: Oil prices retreated Tuesday on fading prospects of an agreement by producers to tackle a lingering supply glut.
Iran is not ready to agree to an oil output freeze, its Oil Minister Bijan Zanganeh said Tuesday on the eve of a meeting in Algeria's capital.
Iran and other OPEC members are to meet with key non-OPEC producer Russia on the sidelines of the International Energy Forum.
They are expected to discuss ways to strengthen prices that have been depressed since 2014 largely owing to a stubborn supply glut.
With expectations of an agreement low, according to industry analysts, oil prices dropped on Tuesday.
Around 1130 GMT, US benchmark West Texas Intermediate for delivery in November was down 80 cents to $45.13 a barrel.
Brent North Sea crude for November shed 93 cents to $46.42 a barrel compared with the close on Monday.
"The rally in crude prices... slumped to a halt on Tuesday after Iran appeared to pour cold water on the chances of an agreement," said Chris Todd, analyst at brokerage Love Energy.
"A description of the meeting as 'consultative' appeared to reinforce views that major producers will fail to reach any form of binding agreement."
While most oil producer states have been supportive of a cap on production, pre-forum talks between OPEC kingpin Saudi Arabia and Iran have been less productive, with neither side willing to give in.
The UAE has meanwhile said it supports a deal to freeze output around current levels, adding however that production cuts are not up for discussion, according to Bloomberg News.
An attempt in April to reach a production cap was scuppered by Iran, which refused to take part in talks after it had just emerged from years of Western-imposed nuclear-linked sanctions.
"Trading has been volatile and sentiment seemingly entirely driven by speculation on the outcome of a deal," said CMC Markets analyst Alex Furber.
"The last meeting in Doha in April was a complete non-event and key figures have downplayed the chances of the (Algeria) meeting procuring a clear outcome," he added.
Crude prices have been battered since late 2014 by supply that has far outweighed demand, with prices hitting 13-year lows earlier this year.
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