All eyes on record oil prices as OPEC prepares to meet

"Either we hold (output) steady or we cut in order to restore market balance and stability," Khelil, who is also Algeria's energy minister, said in a statement ahead of Wednesday's meeting.

OPEC members Iran and Venezuela are calling on the cartel to cut production when it meets in the Austrian capital, arguing that prices were likely to slide when demand for crude drops during the second quarter.

The March-June period coincides with warmer temperatures in the energy-hungry northern hemisphere, thus reducing demand for heating fuel.

But should crude futures remain close to historic highs by the time of Wednesday's meeting, the organisation would be unlikely to endorse a cut in production.

"I think we won't do anything if prices stay at this level," Libya's acting Oil Minister Chukri Ghanem told AFP on Friday.

At an extraordinary OPEC meeting on February 1 in Vienna -- called amid fears of a global economic slowdown -- the cartel agreed to hold its output quota, insisting the market was adequately supplied.

In sitting tight, the organisation ignored pleas from US President George W. Bush to increase production to help cool soaring prices which weigh on economic growth and push up inflation.

Oil prices had struck a record-high 100 dollars at the start of January. On Friday the price of New York crude hit a fresh peak of 103.05 dollars per barrel.

"Prices have been pushed higher this month (February) ...