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Oil rallied this week on false hopes for OPEC deal

Andrey Rudakov | Bloomberg | Getty Images

There's little chance the OPEC cartel and nonmember Russia could reach a deal that would result in lower oil production, despite market intrigue and a jump in crude prices on talk of a possible agreement.

Analysts said Iran would have to be on board in order for OPEC to be willing to strike any deal, but an unnamed Iranian official quoted by the Dow Jones news agency on Friday signaled the country would not participate.

"It's very hard to see how this works with Iran ramping up production. What the key is now is how much Iran comes out in terms of putting stored oil back onto the market. The next shoe to drop is clarity about how much oil Iran could put in the market," said Daniel Yergin, vice chairman of IHS.

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