Iran is sending positive signals that it may support joint action to prop up the oil market, sources in Opec and the oil industry said.

Opec’s third-largest producer has been boosting output after the lifting of Western sanctions in January.

Tehran refused to join a previous attempt this year by Opec plus non-members such as Russia to stabilise production, and talks collapsed in April.

Though Iran has not yet decided whether to join a new effort, Tehran appears to be more willing to reach an understanding with other oil producers, the sources said.

Venezuelan Oil Minister Eulogio Del Pino last week toured oil-producing countries to rally support for a deal.

In general, Iran prefers more actions from the Opec side rather than just freezing at the maximum production level of all members

“Iran is reaching its pre-sanctions production level soon and after that it can cooperate with the others,” said a source familiar with Iranian thinking after del Pino’s visit to Tehran.

“In general, Iran prefers more actions from the Opec side rather than just freezing at the maximum production level of all members. If this freezing issue helps prices improve, Iran will help.”

Members of the Organization of the Petroleum Exporting Countries are due to meet informally in Algeria next month on the sidelines of the International Energy Forum. Russia is also expected to attend the IEF.

Iran confirmed its participation in the Opec meeting in Algeria, an Opec source said on Tuesday.

“Negotiations are ongoing. I see positive signs coming from Opec ‘majors’,” said a senior industry source familiar with the discussions.

The previous attempt to freeze output at January levels collapsed in April after Saudi Arabia said it wanted all producers, including Iran, to join the initiative.

However, since the appointment of Khalid al-Falih as Saudi energy minister in April, Riyadh has taken a softer tone towards Iran at Opec. The group is likely to revive freeze talks in September as Saudi Arabia appears to want higher prices.