OPEC Output Cut "Must Be Significant": President

OPEC oil producers will cut oil supplies when they meet next week in Vienna and "the reduction must be significant," the group's president, Chakib Khelil, was quoted as saying on Saturday.

"There will be a reduction of the output and the reduction must be significant to restore the balance between supply and demand," Algerian state news agenyc APS quoted Khelil as telling reporters.

The Organization of the Petroleum Exporting Countries will hold an emergency meeting on Oct. 24 in Vienna to discuss the impact of economic weakness on oil markets.

Pressure is mounting within OPEC to reduce supplies as oil prices have fallen more than 50 percent from July's record of $147.27 and expectations have grown that a global recession will erode fuel demand.

"If the cut is 1.5 million barrels per day, then it will be 1.5 million barrels. If it is 2.0 million barrels per day, it will be 2.0 million barrels per day," added Khelil, who is also Algeria's energy and mining minister.

Earlier, Khelil was quoted in Saturday's edition of Algerian daily El Watan as saying that OPEC saw oil prices bottoming at $70-$90 per barrel.

"Normally, OPEC has no price target. The market decides on prices. But people say that the bottom price, the bottom cost below which we can not step down, is between $70 and $90 per barrel," El Watan quoted Khelil as telling reporters.

He cited cases of Canada and Brazil, where oil could not pumped if prices were to fall below $70 per barrel.

On Friday, Khelil told Algerian state radio a "decision will be taken to lower oil supply by some OPEC members so that the oil price will not be damaged.

"This decision will not be implemented immediately because there are contracts, but will probably be implemented 40 days after it (the decision) is taken." He did not say which countries were likely to cut supplies.

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