"They should do nothing if the price remains as it is," Attiyah told reporters in Dubai on Monday. "The compliance is very good so far."

OPEC kingpin Saudi Arabia has notified Asian refiners it will cut April crude supplies by about 10 percent below its term contracts, industry sources told Reuters on Monday, after its March supplies to Asia were 7-8 percent below contracted volumes.

"We'll probably be seeing further volatilities in the short term since the United States is just coming out of winter and the market is still trying to gauge the adequacy of oil supplies and gasoline inventory levels as the northern hemisphere enters peak summer driving demand," Moore said.

Oil prices rallied to over $62 last week after U.S. government data showed U.S. gasoline stocks fell 3.8 million barrels, amid a series of refinery glitches.

Despite concerns of excess supply in the second quarter, analysts said political tensions in the Middle East would continue to lend support to prices.

Iran said on Sunday President Mahmoud Ahmadinejad wanted to brief the U.N. Security Council about its civilian nuclear plans, which the West says are a covert attempt to make atom bombs.

The five permanent members of the council -- the United States, France, Britain, China and Russia -- plus Germany, are considering imposing new sanctions on Iran over its nuclear ambitions <ID:nL11347135>.

Algerian Energy and Mines Minister Chakil Khelil said on Saturday that oil will remain at its current level until the end of 2007 because of Iran's nuclear standoff and strong oil demand.

Imports of crude into the world's second largest consumer China climbed 8.3 percent in February from a year earlier, official data showed on Monday.