OPEC Delegates Cautious Over Oil-Price Rebound

Another Gulf delegate said: "The general feeling is that prices will still remain lower than what we all want because of the excess of supply in the market. The expectation is that these stocks will not decrease before the first half of the year."

"There are a number of good signs, for example the shutdown of some production in the U.S. and Canada. So it means that the policy decision made in the last meeting was the correct one, it'll be slow, painful for some more than others but in the end effective," that delegate said.

OPEC last November decided against cutting its production despite misgivings from its non-Gulf members, after Saudi Oil Minister Ali al-Naimi said the group needed to defend market share against U.S. shale oil and other competing sources.

The decision sent oil prices to what was a four-year low close to $71 a barrel. Crude later fell to a near six-year low of $45.19 on Jan. 13 - further than many delegates had expected - and was trading above $53 on Monday.

Publicly, OPEC officials including Secretary-General Abdullah al-Badri have started to express confidence that a bottoming out of prices and a recovery may be under way.

The talks on OPEC's long-term strategy - which is updated every five years - continue on Tuesday. OPEC oil ministers, who decide the group's output policy, are not scheduled to meet until June 5.

(Reporting by Rania El Gamal, Alex Lawler and Amena Bakr; Editing by Dale Hudson)