OPEC is keen that non-OPEC play its part in reducing world inventories to support a price rise that has stalled near $55 a barrel. Crude is up from lows last year below $30.
The Organization of the Petroleum Exporting Countries (OPEC) had previously agreed to cut output by 1.2 million barrels per day (bpd), and on Saturday, 11 non-OPEC producers agreed to join the effort and reduce output by 558,000 bpd.
Dallas Federal Reserve Bank President Robert Kaplan on Friday said that he would expect U.S. oil producers to ramp up their rig count once the price of crude rises to USD55 to USD65 a barrel.
OPEC members gather in Algiers for the International Energy Forum starting Monday and are expected to hold informal talks following the two-day event. Algeria's oil minister Nourredine Bouterfa has warned prices could drop back into the USD 30 per barrel range if officials walk away empty handed, but that appears to be the most realistic scenario.
Statements from key players like the Saudis, the Russians, the Iranians leaves you very sceptical if they can really come to any kind of meaningful agreement, says Citigroup's Seth Kleinman.
The front-month October contract for Brent LCOc1, the global oil benchmark, shed 20 cents to USD 48.69 a barrel as of 0034 GMT after it previously settled up USD 1.31, or 2.8 percent, at USD 48.89 a barrel.
US benchmark West Texas Intermediate for September delivery was down seven cents to USD 41.80 in late-morning trade.
Kerosene through public distribution system (PDS) is sold at Rs 14.96 per litre against the actual cost of Rs 29.91.
Weak global economic growth momentum and a supply glut will cap oil prices at around USD 60 for the rest of 2015 and into 2016, analysts say.
The jump in oil prices has been supported by stronger-than-expected demand growth and a slowdown in crude supply, yet traders said that global crude markets remained well supplied, prompting many to sell contracts to cash in on the recent rally.
Michele Della Vigna, head of European energy research at Goldman Sachs, said non-OPEC oil producers had created the oversupply in the market which has weighed on prices.
Concerned over volatility in international oil prices, Finance Minister Arun Jaitley Friday expressed hope that the situation in the Middle East will improve and the prices will stabilise.
Gold took a breather on Tuesday after two-straight sessions of gains to hover near its highest in a month, underpinned by safe-haven demand triggered by a slump in oil prices and global equities.
US oil rose more than USD 2 to USD 100.87 a barrel on growing concern that unrest in Libya could spread to other major Middle East producers including top oil exporter Saudi Arabia.
The UK and Europe's weakest economies are looking most at risk from a surge in crude oil to near USD 100 a barrel that threatens a nascent recovery.