U.S. oil prices fell as much as 5 percent on Tuesday after Saudi Oil Minister Ali Al-Naimi ruled out any production cuts, restating the kingdom's rationale for maintaining output was that demand would pick up excess crude that has crushed prices over the past 20 months.
Big oil exporters Saudi Arabia and Russia have proposed to freeze output at January levels, which were near record highs, only if other producers also do the same.
More meetings on the potential freezes will be held in March, al-Naimi told the IHS CERAweek conference in Houston, adding that he expects most of the countries that count to freeze crude production levels.
Analysts remain skeptical that the cuts will be effective in rebalancing the market.
"If they freeze production at January levels when you're already over supplied by around a million barrels per day it just prolongs that situation of oversupply," said Energy Aspects' analyst Dominic Haywood.