'Abnormal' oil prices could fall to $80-OPEC pres

By Muklis Ali

JAKARTA (Reuters) - OPEC should not consider cutting production after oil's steep two-week decline as markets are now balanced, OPEC President Chakib Khelil said on Tuesday, adding that prices could yet fall another $50 a barrel.

Khelil, who is also Algeria's oil minister, said oil prices could fall to $70 to $80 in the long-term, if the U.S. dollar continued to strengthen and geopolitical anxieties eased.

"The price today is abnormal at $123 a barrel," said Khelil, speaking to reporters on a visit to Jakarta to meet Indonesia's energy minister.

He did not elaborate, but OPEC ministers have said repeatedly that they believe the surge in oil prices is not being driven by a shortage of supply.

Asked if OPEC members should cut supply if oil prices continue to decline, he said: "No, I don't think so, why should they cut production? They always want to make sure there is good supply and demand and to satisfy the demand."

U.S. oil prices have fallen by $22 from a record high above $147 a barrel earlier this month amid growing concerns that high prices and slowing economic growth are causing a decline in demand, but prices are still up 30 percent on the year.

"We are not worried about any price, because we don't decide the price. We just meet the demand," he said.

Khelil said he did not see any signs of demand destruction from high prices.