Algeria expects stability in oil prices until February

The Algerian minister of energy and mines, Shakib Khalil, expected that oil prices will continue to be stable until February and to be reduced later with the seasonal decline in demand.

In statements quoted by the Algerian dailies, Khalil said that demands for oil in the second quarters of next year will be much less in the other seasons of the year.

He added we should wait until OPEC's next meeting on January 30th, 2005 when ministers of oil at OPEC will be meeting to discuss the situation in the market and taking necessary decisions for the stability of prices.

Khalil stressed that OPEC members cling to the decision they took this month in Cairo to reducing production as from the beginning of January 2005. OPEC's oil ministers decided reduction of the production of the organization's 10 members -- with the exception of Iraq -- by one million barrel of oil daily.

This amount, however is an extra increase done by the organization in order to reduce oil prices. The official set ceiling for production with the exception of Iraq's production which is considered outside the confines of production share because of the conditions Iraq passes, is 27 million barrels.