Brent crude futures pared gains Tuesday following news that Qatar, Saudi Arabia, Russia and Venezuela would lead an effort to freeze output at January levels, dashing hopes of a cut in production.

Oil producer Iran swiftly dashed hopes of a deal however, saying it would not abandon its share in the oil market, although Reuters cited two two sources familiar with the matter as saying the OPEC member could be offered special terms under a global deal to freeze oil production levels.

"Iran has its own model and the meeting is taking place in Iran. Iran is returning to the market and needs to be given a special chance but it also needs to make some calculations," said one of the sources, who were not from Iran.

But fellow oil producer Iraq said it was ready to freeze production at January levels if an agreement was reached among OPEC and non-OPEC countries.

The large producers met in Doha, Qatar, to discuss measures to tackle a supply glut that's sent prices to 13-year-lows.

Qatar's energy minister, Mohammad bin Saleh al-Sada, said the agreement would help stabilize the market. Saudi oil minister Ali Al-Naimi said the freeze was "adequate" for the market, adding the meeting was successful. He added he hoped producers inside and outside OPEC would adopt the proposal.

Reuters subsequently cited Azeri Deputy Oil Minister Natiq Abbasov as saying Azerbaijan had no plans to freeze its oil production. Iran's oil minister also said Tehran would not give up its market share, according to Reuters which cited the Iranian Shana agency.



The producers will meet with Iran and Iraq on Wednesday and may find significant reticence on the part of Iran to hold output steady. After years of sanctions, Iran plans to ramp up production in a bid to regain market share.

Qatar is the current holder of the rotating OPEC presidency.

Earlier, news of the meeting sparked hopes of an eventual deal on supply cuts, after Saudi Arabia-led oil cartel OPEC previously persistently refused to lower its 30 million barrel-a-day production ceiling in a strategy to squeeze out higher cost energy producers, including U.S. shale companies.

