OPEC chief says oil price will stabilise soon

PRICE PREDICTION: OPEC president says crude prices will stabilise by February 2009. (Getty Images)

Crude prices are expected to begin stabilising within the next two months, OPEC president said on Saturday.

Many OPEC member states have started reducing oil supply in line with the group's biggest-ever output cut agreed earlier this month, he added.

"Many countries have implemented the reduction. I think all of them will implement it because they do not have a choice," Chakib Khelil told Algerian state radio.

The Organisation of the Petroleum Exporting Countries agreed on Dec.17 to reduce supplies by 2.2 million barrels per day.

"I think this reduction will have an impact on prices in January-February because it is a strong reduction," Khelil said.

"We seek to stabilise the price and prevent it from falling further. I think we will reach this stabilisation in January-February, God willing," he added but gave no forecasts for prices in the next two months.

Oil prices were at $37.69 in London on Friday.

Khelil, also Algerian energy and mines minister, said he expected the level of stocks to be brought to 52 days by the end of 2009.

"I think the organisation will be stronger in the future. OPEC, with 40 percent of the world's oil currently, may have 50 percent within 10 years," he said, citing falling oil reserves in some non-OPEC countries. (Reuters)

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