"Talk of the possibility of a decision during OPEC's meeting to reduce the cartel's production is premature," Nasseri said, quoted by the official WAM news agency.

"Any decision adopted (in Vienna) will take into consideration the political situation (in Iraq) and factors affecting the oil market, including levels of supply and demand and price levels," the minister added.

A source at the Organisation of Petroleum Exporting Countries (OPEC) said that the 11-member cartel would meet on April 24 to consider a possible reduction of its oil production.

Oil prices steadied on Tuesday after fluctuating wildly the previous day, bolstered by prospects of possible output cuts by OPEC as the US-led battle for Baghdad intensified.

The reference Brent North Sea crude for May delivery fell three cents per barrel to 24.55 dollars in late trading in London.

The New York light sweet crude benchmark May contract slipped six cents to 27.90 dollars per barrel in early trading.

SPACE.WIRE