Brent crude futures were up 74 cents on the day at $81.94 a barrel at 0844 GMT, having touched a session peak of $82.20, the highest since November 2014.
The so-called 'OPEC+' group, which includes other oil producers, including the world's biggest Russian Federation, as well as Oman and Kazakhstan, met over the weekend to discuss a possible increase in crude output, but the group did not see the need to add new output as the market is well-supplied now.
Indeed, Khalid al Falih, energy minister for Saudi Arabia, stated, "I think member countries over the last three months since June have responded in a very good way and have opened the taps and provided a lot of supply to offset decreases in Iran, decreases in Venezuela, decreases in Mexico, and markets are quite balanced today".
"We don't believe OPEC can actually raise output significantly in the near term, as the physical spare capacity in the system is not that high", Kelty said.
OPEC and major Middle Eastern producers should take the responsibility to increase production when the market needs more crude, said Ali Nazar Faeq al-Shatari, deputy director of Iraq's State Oil Marketing Organization, or SOMO.
The bank said "the Iran factor may dominate the market near-term and cause a (crude price) spike", although it added that emerging market "demand concerns could reappear thereafter".
The sanctions against Iran's oil sector are set to begin on 4 November and Opec and non-Opec oil producers ruled out an immediate production hike to counter falling supply.
The body said demand would continue rising despite electric-powered vehicles taking an increasing market share and political moves to champion renewable energy.
Major oil trading houses are predicting the return of US$100 crude for the first time since 2014 as OPEC and its allies struggle to compensate for USA sanctions on Iran's exports.
Representatives from member nations of the Organization of the Petroleum Exporting Countries, and non-OPEC countries such as Russian Federation, gathered in Algeria on Sunday.
The price rally mainly stemmed from a decline in oil exports from OPEC member Iran due to fresh United States sanctions. This would inflame tensions in the region and increase geopolitical risks reflected in oil prices.
Some have said softening demand from trade tensions between the USA and China to offset loss of Iranian supply, but Tradition's McGillian said that unless trade tensions show signs of eroding Chinese demand, oil prices will surge further.