Oil rallied on Monday as the world’s largest producers gathered in Algeria to discuss ways to support the market, with nervous trade driving volatility to its highest since exporters met in April.
Scepticism about any deal being reached has prompted money managers to cut their bullish bets to a one-month low last week, when prices fell by nearly 5 percent.
Members of the Organization of the Petroleum Exporting Countries are meeting informally on the sidelines of the International Energy Forum in Algeria from Sept. 26-28, where they will discuss a possible deal to limit output.
Iran, which is still ramping up production to where it was in 2012, before the imposition of Western sanctions that lifted in January, downplayed the chances of a deal, although several other members of the group said they still hoped there would be some agreement on how to tackle a global surplus of crude oil.
Brent crude futures LCOc1 were last up 94 cents on the day at $46.83 a barrel by 1335 GMT, having recovered from an earlier low of $45.74, while U.S. crude prices CLc1 rose 87 cents to $45.35 a barrel.
