SINGAPORE (AFP) - Oil was trading around US$63 a barrel in Asia on Thursday as investors cashed in on gains following an overnight surge to new six-month highs.

Ministers from the Organisation of Petroleum Exporting Countries (OPEC) were set to maintain output levels at their meeting in Vienna, with hopes of rising crude oil demand and higher prices convincing members to maintain the status quo.

The 12-member oil cartel believes the market is oversupplied, as shown by the high stock levels, but it appears satisfied with price levels after a rally in the past two weeks pushed crude above 60 dollars a barrel.

New York's main futures contract, light sweet crude for delivery in July, eased 44 cents to 63.01 dollars a barrel after settling at 63.45 dollars - a level last seen in early November - in US trade Wednesday.

Brent North Sea crude for July delivery fell 50 cents to 62.00 dollars.

"I think it's part of the daily volatility... some profit-taking this morning is not unexpected," said Victor Shum, senior principal of Purvin and Gertz energy consultants in Singapore.

He added that the oil market had already priced in the "foregone conclusion" that crude output levels would be maintained when the OPEC ministers meet later Thursday.

OPEC members signalled Wednesday they would keep their production unchanged, pointing to signs that an improving world economy would help absorb current overproduction.

Saudi Arabia, the most influential power in the cartel, said there are signs of a pick-up in demand and led calls to keep the group's output target steady.

"The market is currently out of balance, but it's starting to get back in balance," Saudi Oil Minister Ali al-Nuaimi told reporters in Vienna.

Algeria said there was a consensus on maintaining output levels and even hardline Iran, whose oil minister usually pushes for cuts, conceded that the group's production target would remain the same.

"Prices are stabilising or even increasing, so why change (output)?" Algerian Energy Minister Chakib Khelil asked as he arrived in Vienna for the meeting.