OPEC's Khelil: Oil Prices at $123 'Abnormal'

Oil prices are still abnormally high, and OPEC member nations should not cut supply if they continue to fall as the oil market is now in balance, OPEC President Chakib Khelil said on Tuesday.

Khelil, who is also Algeria's oil minister, also said that oil prices could fall to $80 or just below in the long-term if the U.S. dollar continued to rise 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.

The price of crude oil has slipped $22 from a record high above $147 a barrel earlier this month, but is still up 30 percent on the year.

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."

Khelil said he didn't see any signs of demand destruction from high prices.

"I think there is a good supply, there is a balance in the market."