Neighbouring Oman backs prolonging the output limits beyond March and sees producers extending them until the end of 2018, Oil Minister Mohammed Hamad Al Rumhy told reporters.
On the other hand, traders expected that the ongoing supply cut, which is led by the Organization of Petroleum Exporting Countries and Russian Federation, would likely prevent a very big fall in oil prices.OPEC and Russian Federation have contributed to the reduction in excess supplies.
Oil prices settled mixed on Monday as geopolitical tension in Middle East offsets rising USA output. Meanwhile, OPEC once again prepares for its November 30 meeting in Vienna, where most expect it will announce another extension of its oil production cut agreement.
Traders said crude prices were generally well supported as ongoing output cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation have contributed to a significant reduction in excess supplies that have been dogging markets since 2014.
OPEC and allied oil producers should extend their production cuts beyond March to help re-balance the market, the United Arab Emirates said, adding weight to a gathering consensus for longer reductions in output among participants in the global accord. The UAE, Opec's fourth-largest producer, sees no need for the organisation to hold an extraordinary meeting in the first quarter of next year, he said. The Organization of the Petroleum Exporting Countries' latest monthly data showed Venezuela reporting production of 1.955 million bpd in October, versus 2.085 million in September. The oil market is rebalancing at an accelerating pace, as global levels of oil inventories have fallen visibly, and the demand for oil is robust, Opec Secretary-General Mohammad Barkindo affirmed.
So far this year, Brent has averaged $54.5 a barrel.
However, the Brent oil price was steady at close to two-year high yesterday, with support from Middle East tensions and record long bets by fund managers balanced by rising USA production.
Tensions in the Middle East have raised the prospect of disruptions, but it was unclear whether a strong natural disaster that hit Iran and Iraq on Sunday had affected the region's oil production.
The West Texas Intermediate for December delivery was up 0.02 US dollar to settle at 56.76 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery lost 0.36 dollar to close at 63.16 dollars a barrel on the London ICE Futures Exchange.
Bahrain said Iran was behind an explosion in its main oil pipeline.