Oil firms on eve of OPEC meeting

LONDON (AFP) - World oil prices rebounded slightly on Tuesday, after recent heavy losses, with traders on tenterhooks on the eve of a key production meeting of the OPEC cartel.

New York's main contract, light sweet crude for April delivery rose 32 cents to 80.12 dollars a barrel.

London's Brent North Sea crude for April delivery was up 39 cents to 78.28 dollars. The contract expires at the close.

The market bounced back somewhat after diving the previous day on the back of the strong dollar and concerns about US energy demand and possible Chinese moves to cool its booming economy.

"Fundamentals (of supply and demand) will be back in focus again also as OPEC meets tomorrow in Vienna where we expect the exporting group to leave output policy as is," said VTB Capital analyst Andrey Kryuchenkov.

He added that such a move would help "reduce swollen stockpiles and support prices in the second quarter of 2010".

The Organization of Petroleum Exporting Countries (OPEC) was widely expected to maintain its official oil output quota of 24.84 million barrels a day when it meets in the Austrian capital on Wednesday.

"There is no need to raise output ... Kuwait favours maintaining production quota," Kuwait's Oil Minister Sheikh Ahmad Abdullah al-Sabah said on Tuesday before heading to Vienna -- home to OPEC's headquarters.

However Kuwait, like other OPEC members, is calling for greater compliance with the cartel's official production ceiling as data shows that the organisation is pumping more than its set target.

"Kuwait will push for more (output) compliance ... that's the major issue" at the upcoming OPEC ministerial meeting, said Sheikh Ahmad.

OPEC members are keen for greater compliance with the official output quota amid concern that demand for oil could weaken as governments look to end unprecedented measures that have put countries on a road to economic recovery.

Markets remain worried that rising inflation in China may cause the Asian power to cool its overheating economy, in turn dampening the nation's demand for energy.

"Prices were pressured by the stronger dollar and concerns that potential credit tightening in China might curb energy demand," analysts from Singapore's United Overseas Bank said.

Key OPEC members on Monday said there was no need for the cartel to change its official oil output target owing to the current supply, demand and price situation amid a world economic recovery.