Oil must reach $90 to stabilise market -Algeria

ALGIERS, June 13 (Reuters) - The global oil market could stabilise if crude prices rise to around $90 a barrel and that is likely to happen in the second half of 2010, Algerian Energy and Mines Minister Chakib Khelil said on Saturday.

"A price which ensures the stability of the oil market must evolve around $90 a barrel. It should be reached between the middle and the end of 2010," Algerian official news agency APS quoted him as saying.

Khelil attributed current oil price of around $72 a barrel to factors such as falls in stocks, the International Energy Agency's decision to raise its world demand forecast and a rise in U.S. fuel consumption.

He also cited expections of an economic rebound in China and the United States and good compliance by OPEC members with the latest output cut.

But Khelil said prices could slip to between $65 and $70 for the rest of the year.

"I do not think prices will continue to increase. They may stabilise or perhaps fall to $65 or $70 a barrel," he said. (Reporting by Hamid Ould Ahmed; Editing by Tom Pfeiffer)