Iran said on Thursday an increase in oil prices to more than USD55 per barrel was not in the interest of OPEC as it would lead to a rise in output by non-OPEC producers, the semi-official Fars news agency reported.
A meeting between OPEC and non-OPEC oil producers on an agreement to freeze output ran into last-minute trouble in Qatar on Sunday due to what looked like a new spike in tensions between Saudi Arabia and Iran, sources told Reuters.
Oil surged Monday on remarks from Saudi officials that the country is willing to work with oil producing and exporting countries, both inside and outside of OPEC to maintain market and price stability. West Texas Intermediate crude futures shot higher after the comments but then fell back and fluctuated.
Inaction by the Chinese government following an 11 percent rout in local stock markets last week encouraged a free-fall in global equities and other commodities on Monday.
Other commodities also hit fresh lows in early Asian trading as fears spread that a more severe slowdown in China would pull down other economies in the region, denting energy and raw material consumption.
Oil extended losses to multi-month lows on Monday on worries of oversupply as OPEC pumped at record levels in July, while weak China data stoked concerns about slower growth at the world's second largest oil consumer.
Diplomats are negotiating to fill the gaps in an April 2 framework agreement that would curb Iran's nuclear programme, allaying Western fears it could develop an atomic bomb, in return for relief from international sanctions.
The IEA's expectation for a "notable acceleration" in demand for oil in 2015 comes as Iran called on fellow Organisation of Petroleum Exporting Countries (OPEC) members to cut production.