(Ecofin Agency) - The prices of crude oil increased on Friday on talks of a coordinated production cut by the energy minister of the United Arab Emirates but analysts still believe it is unlikely and the supply glut will continue.

International benchmark Brent crude increased by 3.6 % at $31.15 per barrel.

According to the United Arab Emirates’ energy minister, Suhail bin Mohammed al-Mazrouei, the Organization of the Petroleum Exporting Countries (OPEC) was ready to hold a discussion with other exporters on the reduction of output.

He added that members of the group were willing to work together with other producers on a cut, even though the cheap oil is currently causing some output reductions which can help re-stabilize the market.

Meanwhile analysts have said that in spite of the higher Brent there is still slight chance of OPEC and non-OPEC producers deciding on a common policy. “Comments from the UAE energy minister that OPEC was willing to cooperate on production cuts had little impact. We view this as further jawboning, with the likelihood of a coordinated response on supply cuts very low,” ANZ bank said.

The prices of crude oil have witnessed a drop by more than 70 % since mid-2014 as producers pump 1 to 2 million bopd in surplus of demand while there is a delay in global economic growth.

Despite the fact that prices have been low, instability has been high since the beginning of 2016, with 10 to 20 % price increases and drops usually within only a small number of trading sessions.

Investment bank, Jefferies, expects the price instability to remain high and oil markets to be re-stabilized by H2 of 2016, Reuters reports.

Anita Fatunji