Benchmark Brent crude hit its highest since November 2014 at $80.94 per barrel, up $2.14 or 2.7 percent, before easing back to around $80.65 by 1000 GMT.
"I think what they are doing actually is (leading to) higher prices because the fundamentals even do not warrant this level of prices", Kazempour said. Early last week, the market was supported by a report which said Saudi Arabia would be comfortable with Brent prices over $80 a barrel.
Oil leaped after the world's top producers chose to maintain output during a meeting in Algeria at the weekend.
Iranian minister of petroleum has welcomed OPEC's decision effectively rebuffing President Donald Trump's calls for a hike in oil output, saying United States dream to zero Iran's oil exports would not realize.
Brent could rise to US$100 for the first time since 2014 as the market braces for the loss of Iranian supplies due to USA sanctions, according to Mercuria Energy Group Ltd. and Trafigura Group.
"The market does not have the supply response for a potential disappearance of 2 million barrels a day in the fourth quarter", Mercuria Energy Group Ltd.co-founder Daniel Jaeggi said in a speech at the S&P Global Platts Asia Pacific Petroleum Conference, knows as APPEC. The meeting concluded without any decision to increase oil production, a departure from the organization's commitment in June to hike supply of the commodity.
With markets showing signs of further tightening ahead of impending new Iran sanctions, traders and analysts are predicting that oil could scale above $90 per barrel.
Tehran had previously said no OPEC member was allowed to grab market share from rivals, such as Venezuela or Libya, whose production had declined due to unrest or a lack of investment.
USA crude oil production set a new record over the summer producing 10.8 million barrels per day.
Russian Energy Minister Alexander Novak said no immediate output increase was necessary, although he believed a trade war between China and the United States as well as US sanctions on Iran were creating new challenges for oil markets.
"It's a time of great uncertainty in oil markets, from Iranian output post-sanctions to the global economy and demand", said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University in NY and a former Obama administration oil official. The biggest source of new global supply, US shale, is also experiencing growing pains as pipeline bottlenecks and workforce issues hamper growth.