NEW YORK (CNN/Money) - Oil prices rose to their highest close in 12 weeks Tuesday, a day ahead of an OPEC meeting that is expected to postpone fresh supply cuts.
Light crude for July delivery settled up 28 cents at $31.73 on the New York Mercantile Exchange, the highest closing price since mid-March and up nearly 30 percent from a year ago. In London, benchmark Brent crude oil was up 10 cents at $27.61.
OPEC ministers meeting in the Middle East emirate of Qatar Wednesday are widely expected to leave production limits unchanged as delays in the resumption of Iraq's oil exports have kept global supply tight.
Kuwaiti Oil Minister Sheikh Ahmad al-Fahd al-Sabah said Tuesday he wanted the Organization of Petroleum Exporting Countries to keep its current 25.4 million barrel-per-day ceiling in place until it meets again in late September.
"From now to September, Iraq will still have a lot (to do) to reach the previous level of production ... we still have time to continue with our ceiling," the minister said.
After falling from 12-year highs near $40 after Middle East oil facilities escaped the U.S.-led invasion of Iraq without much damage, prices have rebounded to levels which could further undermine already weak economic growth.
High prices for oil's rival fuel, natural gas, have raised concerns over the economic impact of rising energy costs.
OPEC was also expected to press independent exporters such as Russia, Norway and Mexico to back any supply cuts needed later, OPEC President Abdullah al-Attiyah al-Attiyah said.
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Two overnight refinery fires in Louisiana fueled Tuesday's price gains, strengthening concern that summer vacation driving demand could strain supplies.
U.S. fuel inventories have failed to rebuild after supply disruptions from a strike in Venezuela and ethnic strife in Nigeria drew down stocks. U.S. crude stocks are 11 percent below last year, while gasoline stocks are down 5 percent.
Government fuel stock figures on Wednesday are expected to show a small crude inventory increase in the week ended last Friday, a Reuters poll of oil market analysts showed.
-- Reuters contributed to the story.
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