Algeria oil min favors OPEC cut

By Randy Fabi

VIENNA (Reuters) - OPEC President Chakib Khelil, speaking in his capacity as Algerian energy minister, said on Tuesday he favored an OPEC oil output cut to counter a slowdown in demand for fuel.

As OPEC president, Khelil said there was no consensus in the group for such a move and two options -- of holding output steady or cutting -- remained on the table.

"I would prefer in this situation to lower production, as Algerian minister," he told reporters. "The second quarter we are definitely going to have lower demand."

Speaking earlier on Tuesday, the OPEC president said "No change" when asked for his expectation of the group's Wednesday meeting.

Khelil said crude and gasoline stocks in the United States, the world's largest energy consumer, were already at multi-year highs.

That has raised concerns among the Organization of the Petroleum Exporting Countries that a short-term supply glut could send triple digit prices spiraling lower later this year.

"Cutting may not be easy or appear to be the right thing to do, but for the medium-term it may be the best thing to do," he said. "Sometimes we have to make a hard decision now because we want to ensure stability in the future."

Khelil said global oil demand could fall by as much as 2 million barrels per day in the second quarter.