The Organization of Petroleum Exporting Countries (OPEC) may cut output again at its next scheduled meeting in mid-March in Vienna if oil prices continue to fall, says Algerian Energy and Mines Minister Chakib Khelil.
"If the oil (price) downward trend continues by 15 March, I am convinced that everyone will agree to cut production to stabilize the price before they increase later," Khelil told the press over the weekend on the margins of the signing of oil exploration and exploitation agreements for the southern part of Algeria.
"In view of a decline in world oil demand, which differs from one expert to another, it is clear that demand will fall sharply in the second quarter of 2009," the minister added.
According to Khelil, prices will stabilize at $45 or 46 per barrel, before they increase in the third quarter, because of the fulfilment of commitments of OPEC member countries to reduce their production.
In reply to a question about the impact of the global financial crisis on energy investments and projects in Algeria, Khelil asserted that Algeria had not frozen and had no intention to freeze its investment projects despite the global economic and financial crisis.