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CNBC TRANSCRIPT: CNBC'S SHARON EPPERSON SPEAKS WITH YOUCEF YOUSFI, ALGERIAN MINISTER OF ENERGY AND MINES, ON CNBC'S "THE CALL" TODAY

WHEN: TODAY, WEDNESDAY, MARCH 9TH

WHERE: CNBC'S "THE CALL"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Algerian Minister of Energy and Mines Youcef Yousfi on CNBC's "The Call" today. All references must be sourced to CNBC.

EPPERSON: I'M SHARON EPPERSON AT THE CERA WEEK CONFERENCE IN HOUSTON WITH ONE OF THE BIGGEST POWER PLAYERS HERE AT THIS CONFERENCE IN A LIVE EXCLUSIVE INTERVIEW. THE MINISTER FROM ALGERIA FOR ENERGY AND MINES. YOUCEF YOUSFI. OF COURSE THE BIGGEST QUESTION EVERYONE WANTS TO KNOW, WITH WTI PRICES AT $105 A BARREL, BRENT PRICES AT $115 A BARREL, WHAT IS OPEC DOING IN TERMS OF SUPPLIES TO DEAL WITH THE SHORTFALL IN OIL FROM LIBYA?

YOUSFI: WE DON'T THINK THAT THERE IS A PHYSICAL SHORTAGE OF OIL IN THE MARKET TODAY. WE ARE IN CONSULTATION WITH MANY PARTNERS, WITH OPEC MEMBER COUNTRIES AND WITH OTHER PARTNERS, OPERATORS IN THE MARKETS. THE CONSENSUS IS THAT TODAY THERE IS NO PHYSICAL SHORTAGE OF OIL IN THE MARKETS. THERE ARE MAYBE SOME OPERATIONS OF SPECULATION OF THE FINANCIAL MARKET, WHICH IS PUSHING THE PRICES HIGH. BUT I REPEAT, THERE IS NO PHYSICAL SHORTAGE OF OIL IN THE MARKET. AND IF THERE IS A SHORTAGE IN THE MARKET, WE ARE FOLLOWING THE SITUATION VERY CLOSELY. OPEC I AM SURE THAT OPEC WILL TAKE ACTION.

EPPERSON: IS ALGERIA INCREASING SUPPLIES IN ANY WAY? HAVE YOU BEEN ASKED TO DO SO?

YOUSFI: WE HAVE SIMILAR OIL IN LIBYA. AND TODAY THERE IS NO DEMAND FROM OUR CUSTOMERS TO INCREASE OUR PRODUCTION OR OUR EXPORTS.

EPPERSON: WE'RE ALSO HEARING THAT OTHER COUNTRIES HAVE ALREADY RAISED PRODUCTION TO DEAL WITH THE SHORTFALL THAT DON'T EVEN HAVE LIGHT SWEET OIL LIKE SAUDI ARABIA OR THE UAE OR KUWAIT. IS THAT TRUE?

YOUSFI: THEY HAVE ANNOUNCED THAT THEY ARE READY TO INCREASE PRODUCTION IF THERE IS A NEED. ONCE MORE, THERE IS NO PHYSICAL SHORTAGE OF OIL IN THE MARKETS.

EPPERSON: YOU TALKED ABOUT SPECULATION DRIVING PERHAPS SOME OF THE PRICE RISE WE'VE SEEN IN OIL.HOW MUCH WOULD YOU SAY IS DUE TO SPECULATION AND WHERE IS THE SPECULATION COMING FROM?

YOUSFI: FROM THE FINANCIAL MARKETS.WE THINK THAT THE DIFFERENCE BETWEEN THE PRESENT PRICE LEVEL AND THE PRICE -- THE LEVEL OF THE PRICES BEFORE THE CRISIS SOME WEEKS AGO IS MAYBE PART OF THE SPECULATION.

EPPERSON: THERE'S ALSO A GREAT DEAL OF FEAR. YOU SAID SOME OF IT IS PERHAPS PSYCHOLOGICAL.

YOUSFI: YES.

EPPERSON: IN TERMS OF THAT FEAR, MUCH OF IT COMES FROM WHAT IS GOING TO HAPPEN NEXT.WHAT IS GOING TO HAPPEN NEXT?WHAT DO YOU THINK WILL HAPPEN PARTICULARLY IN SAUDI ARABIA?

YOUSFI: WE THINK THAT SAUDI ARABIA IS VERY STABLE COUNTRY AND VERY STABLE PRODUCER AND EXPORTER OF OIL.WE DON'T EXPECT ANY PROBLEMS FROM THE GULF COUNTRIES, PARTICULARLY FROM SAUDI ARABIA. FOR THE TIME BEING, ONCE MORE, THERE IS NO SHORTAGE OF OIL IN THE MARKET. AND WE ARE FOLLOWING VERY CLOSELY THE SITUATION.

EPPERSON: ARE YOU CONCERNED AT ALL ABOUT THE DAY OF RAGE PROTESTS THAT WERE SCHEDULED FOR SAUDI ARABIA FOR FRIDAY?THEY MAY NOT HAPPEN.BUT IF THEY DO, IS THAT THE TYPE OF SITUATION YOU MONITOR CLOSELY?DO YOU THINK IT COULD HAVE AN IMPACT?

YOUSFI: ONCE MORE, WE THINK SAUDI ARABIA IS A STABLE COUNTRY, STABLE PRODUCER AND EXPORTER.

EPPERSON: LET ME GO TO YOUR COMMENT ABOUT SPECULATION THERE OF COURSE IN THIS COUNTRY, THERE HAVE BEEN A LOT OF REGULATORY REFORMS TO CURB OIL SPECULATION IN THE MARKETPLACE. WHAT DO YOU THINK OF SOME OF THOSE REGULATIONS WILL THEY BE HELPFUL?

YOUSFI: PRODUCERS AND CONSUMERS ARE INTERESTED IN STABILITY OF THE PRICES.TWO WEEKS AGO, WE HAVE SIGNS IN RIYADH, A CHARTER BETWEEN PRODUCERS AND CONSUMERS IN ORDER TO FIGHT THE VOLATILITY OF THE PRICES AND TO JOIN OUR EFFORTS TO BRING STABILITY IN THE MARKET. THIS IS POSITIVE ACTION AND EVERYONE IS INTERESTED IN THE STABILITY OF THE PRICES. NOBODY IS INTERESTED IN HAVING LARGE FLUCTUATION OF OIL PRICE. AND REGULATION CAN PLAY A ROLE IN THIS.

EPPERSON: LARRY, DO YOU HAVE A QUESTION FOR THE MINISTER?

KUDLOW: YES, MINISTER, THIS IS LARRY KUDLOW AT CNBC HEADQUARTERS THANK YOU, SIR, FOR COMING ON. REGARDING THE ISSUE OF SPARE CAPACITY, IT IS REPORTED THAT OPEC BELIEVES IT HAS 6 MILLION BARRELS, THE U.S. ENERGY DEPARTMENT SAYS ONLY ABOUT 4 MILLION BARRELS, AND GOLDMAN SACHS SAYS SPARE CAPACITY COULD BE AS LOW AS 2 MILLION BARRELS. WHICH ESTIMATE IS CORRECT, SIR?

YOUSFI: I HAVE NO PRECISE FIGURE BUT I THINK THAT THE 6 IS THE CORRECT ONE.

KUDLOW: WHY DO YOU THINK THAT THE DEPARTMENT OF ENERGY HAS ONLY 4 TO 4.5 MILLION WHAT MIGHT THEY BE LOOKING AT?

YOUSFI: YOU KNOW THERE IS NO PRECISE FIGURE IN THE EXTRA CAPACITY THIS EXTRA CAPACITY EXISTS IT MIGHT BE BETWEEN 5 TO 6 MILLION BARRELS PER DAY

REGAN: MINISTER ITS TRISH REGAN LET ME ASK YOU FIRST WE SAW EGYPT THEN WE SAW LIBYA HOW WORRIED ARE YOU HOW WORRIED IS OPEC ABOUT A POTENTIAL CONTAGION IN THE MIDDLE EAST?

YOUSFI: EACH COUNTRY HAS ITS OWN CHARACTERISTICS THERE IS NO GENERALIZATION OF WHAT IS HAPPENING IN TUNISIA OR IN EGYPT OR LIBYA EACH COUNTRY IS DIFFERENT FROM THE OTHER ONE. NORTH AFRICA AND THE MIDDLE EAST IS NOT ONE SINGLE COUNTRY AND EACH COUNTRY HAS ITS OWN CHARACTERISTICS ITS OWN HISTORY ITS OWN ECONOMIC, SOCIAL AND POLITICAL PROBLEMS THERE IS NO GENERALIZATION WE DON'T THINK THERE IS AUTOMATICALLY CONTAGION AS YOU SAID BETWEEN THE DIFFERENT COUNTRIES

EPPERSON: BUT WE HAVE SEEN WEEKLY PROTESTS IN ALGIERES FROM OPPOSITION GROUPS ARE YOU CONCERNED ABOUT UNREST IN ALGERIA AND WHAT WILL THAT DO TO THE 1.2 MILLION BARRELS A DAY OF CRUDE OIL THAT YOU PRODUCE OR YOUR 100 BARRELS OF SPARE CAPACITY

YOUSFI: WE HAD IN THE '90s A VERY DIFFICULT SITUATION IN ALGERIA. WE HAD TERRORIST ACTIVITY VERY HIGH. AND ALGERIA DIDN'T STOP ONE SINGLE DAY PRODUCTION AND EXPORT OF HYDROCARBONS.OF COURSE, WE HAVE -- WE CAN HAVE DEMONSTRATION IN THE COUNTRIES. WE CAN HAVE PROTESTERS. WE USED TO HAVE THAT.IN FACT, IT IS NOT NOTHING SURPRISING.BUT WE ARE A STABLE COUNTRY AND WE ARE A STABLE PRODUCER AND EXPORTER OF HYDROCARBONS.

EPPERSON: SO NO CHANGE IN PRODUCTION AS OF NOW AND NO CHANGE IN YOUR EXPORTS EITHER BECAUSE OF THE LIBYAN SITUATION?

YOUSFI: WE ARE GOING TO HAVE EXTRA CAPACITY STARTING IN MAYBE NEXT YEAR.WE ARE GOING TO INCREASE OUR PRODUCTION AND OUR SUPPLY. AND THERE IS NO CHANGE FOR THE TIME BEING AT LEAST THIS YEAR.

EPPERSON: THANK YOU SO MUCH. ALGERIA'S ENERGY MINISTER JOINING US LIVE AT THE CERA WEEK CONFERENCE.

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