Oil prices tiptoed higher on Tuesday ahead of Opec's ministerial gathering in Algiers, which is widely expected to leave production limits unchanged for the time being but urge members to adhere closely to output quotas.
US light crude traded six cents up at $32.89 a barrel, extending on Monday's 35-cent gain.
The Organisation of the Petroleum Exporting Countries is due to convene to review production policy with the prospect of demand for oil easing as winter ends in the northern hemisphere.
Opec, which controls half of global crude exports, would normally favour a cut to supplies in the second quarter as demand eases but high oil prices, at $36 a barrel last month, would make any reduction difficult to justify to consumers.
"I don't believe in this situation, because of the high prices in the market, we can cut," said Iranian Oil Minister Bijan Zanganeh.
Cartel members have been producing way over the group's official output ceiling of 24.5 million bpd, excluding Iraq, to contain a winter price spike.
Algerian Oil Minister Chakib Khelil estimates Opec's supply is roughly 1.75 million bpd above the group's self-imposed ceiling.
But dealers will be reticent to sell the market down as memories still linger of Opec's surprise production cut in September when it lopped 900,000 bpd from the official ceiling.
"Politically, it's tough for Opec to cut production at $32 a barrel for US crude.
It looks like they will keep the current ceiling and make a statement for better discipline," said Dennis Kongsiri at Mitsui & Co Energy Risk Management in Sydney.
"That's most likely, but they could cut now," he said. Kuwaiti Oil Minister Sheikh Ahmad-ul-Fahd-ul-Sabah said that once quota busting had been eliminated, Opec would need to consider a cut of one million bpd at its next meeting scheduled for March 31 in Vienna.
Kongsiri said oil supply and demand looked balanced as robust demand, especially from China and the United States, had soaked up Opec's extra output.
"The markets are not distressed and are in fairly good balance.
I think if we see US crude start to fall to $29 or $28 a barrel, we'll probable see a statement from Opec about a cut.
That's probably as low as we'll see prices go," Kongsiri said.
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